When it comes to the cosmetics sector, consumers are always worried about the process that is used to create the products. This is why the world is tending towards a new era of organic, natural cosmetics that are free of toxins and any other chemicals.
MamaEarth is a company by the moms, for the moms, and through the moms. They have over 200 moms involved who help in conceptualizing, trying, testing, and formulating the products. MamaEarth is a subsidiary of Honasa Consumer Pvt. Ltd., headquartered in Gurgaon, India.
It was established in 2016. The main goal is to create products that are toxic-free and any other harmful chemicals that are safe for the skin.
MamaEarth is the first firm in Asia that has been certified “Made Safe” – a US-based non-profit organization that provides a comprehensive human health-focused certification for making non-toxic products.
Vision and Mission Statement:
“We aim to build a brand that is your friend, every parent’s friend. A friend who understands you knows your issues, and tries hard to resolve them, well most of them. A brand that every parent like you and I can trust, a brand that intends to make the lives of mums & expectant mums better and more beautiful. A brand that welcomes all our babies to a healthy and safe world. We aspire to take care of every parent & baby’s well-being from head to toe with safe, toxin-free, international standard products which you can choose without having to think twice. Well, it’s a lot like love, Awwww”.
Founders and Management Team:
The founders of the brand are Ghazal Alagh and Varun Alagh. They got the idea when they were preparing to welcome their own baby. They had their concerns just like most parents, over the child’s health.
They started to research toxin-free baby products but were shocked to see that most products contained harmful substances.
Varun Alagh, founder, and CEO of MamaEarth graduated from Delhi University of Engineering with a bachelor’s degree in Electrical engineering and an MBA (finance and Marketing) from XLRI, Jamshedpur. Varun previously worked for companies such as Coca-Cola, Hindustan Unilever Limited, and Smirnoff before launching Honasa Pvt. Ltd., MamaEarth’s parent company. He is known for his expertise in brand management.
Ghazal Alagh, Founder and also the Chief Innovation Officer is a graduate of Punjab University with a BCA in Information Technology. She formerly worked as an intern in NIIT before starting “Dietexpert ” in 2012. She has also taken intensive courses in Modern Art and applied Arts at School of Visual Arts and New York Academy of Art and is considered among India’s top 10 artists both nationally and internationally.
Logo and Tagline:
MamaEarth’s products are designed with natural components to provide you with a toxin-free skincare and haircare line.
In early 2020, with the beginning of the COVID-19 pandemic, MamaEarth announced “Goodness Inside” as its brand purpose, in line with its mission of offering safe personal care products that were good for human beings as well as the environment.
Funding and Investors:
| Date | Investors | Amount | Round |
| Dec 2016 | Fireside Ventures | $125K | Seed |
| Sep 2017 | Fireside Ventures | $ 1 Million | Venture Capital |
| Apr 2018 | Shilpa Shetty Kundra | $250 K | Venture Capital |
| Sep 2018 | Fireside Ventures, Stellaris Venture Partners | $4 Million | Series A |
| Jan 2020 | Sequoia Capital India | $17 Million | Series B |
| Jul 2021 | Sofina Ventures | $50 Million | Series C |
| Dec 2021 | Sequoia Capital India | $37.5 Million | Series D |
| Total Funding | $109.87 Million |
MamaEarth raised a total of $109.87 Million in the funding of 7 rounds.
Products and Services:
MamaEarth started with only 6 products in its portfolio during its establishment in 2016. But now the product range has grown to over 80 natural and toxin-free goods, which are used by more than 1.5 million consumers.
The brand aims to solve the recurring problems of young parents with safe, toxin-free, and international standard products, which will help them appreciate the joy of parenting without any hassles.
The products for children are safe, mild, and made with sensitive skin in mind. Another specific feature is zero tolerance to synthetic detergent containing sulphates which can lead to irritated and inflamed skin in the long run.
They use plant-based alternatives for skin care than sulphate-based ones. They claim that their products don’t strip off the natural oil content in the skin using sulphate and rather they use natural materials like onion, saffron moringa oil, and lavender oil for skin care.
In the case of vitamin C contained products, they have their face and skin serums purely made out of orange, and aloe vera. Stressing plant-based products Another unique observation is that MamaEarth products only have a naturally mild fragrance in their products which avoid deep chemical-based perfumes to be mixed with the product.
Avocado is a major contributor in skin care products along with argan for better elasticity and nourishment for the skin.
The use of bioactive extracts from botanicals in skin care is the main highlight of Mamaearth. Moringa oil, which is a rich source of vitamins, antioxidants, and nutrients, is the main ingredient for the face creams of Mamaearth.
The antimicrobial activity of turmeric with aloe vera is utilized well for making body creams by MamaEarth pointing to the authenticity of natural products used for skin care products.
The unending safety of products made of coconut oil, and olive oil, claiming the solution for many synthetic fiber products which can elevate the risk of cancer is also another feature of MamaEarth.
Market Analysis and Strategy:
The direct-to-customer company has completely evolved today from a baby care product brand to a personal care product brand and is also available on various e-commerce platforms like Flipkart, Nykaa, Amazon, etc. Below listed are some of the strategies that worked wonders for MamaEarth.
- Expanding Consumer Base: In the initial stages, the brand only focused on babies and mothers as its target audience, but eventually, it ventured into the skincare and hair care segment also. It sells bathing ranges, skin care creams, and serums, face wash, lotions, hair oils, etc. In the men’s product range, it offers products such as face wash, after-shave lotions, beard and hair oils, and shampoos, etc. The best part is that all these products are toxin-free and safe for the skin and hair.
- Focusing on Digital platforms: As the use of the internet is increasing and many users rely on digital platforms for information, the brand runs campaigns on such platforms to increase its brand awareness and reach a wider set of audience. Approximately 90% of sales come from digital platforms.
- Brand Messaging: It sells products that are toxic and harmful chemicals-free. The brand offers its products at a slightly high price but, at this price, it offers the best quality products. Mamaearth brings out the best of nature by offering products made up of all-natural ingredients. Also, the products of Mamaearth are cruelty-free. The brand even shows all its product ingredients on the package. So that’s how the brand lives up to its purpose of “Goodness Inside”.
- Word of Mouth: The brand pitches its mom bloggers to spread awareness for the brand. When a brand suggestion comes from a consumer, then it seems authentic and trustworthy. The brand believes in mum-power, so it focused on using a word-of-mouth tactic where the mums can spread the word about the brand and how it’s the best quality for their babies.
- Influencer Marketing: Social media platforms play a major role as it is the best way to connect with target consumers. MamaEarth collaborates with social media influencers and pitch the niche audience of these influencers. It is a well-known fact that when an influencer endorses something, then it is followed by their community members because their work is to influence the people. Mamaearth works with over 500 mom bloggers to spread word of mouth on digital platforms.
- Brand Endorsements: The growth for MamaEarth products increased rapidly after the famous Indian Actress, Shilpa Shetty Kundra became an investor and brand ambassador. Her digital presence gave the brand a wide reach and increased the brand value for the products. MamaEarth also sponsors the famous reality tv show BigBoss. The show is widely popular and has a huge viewership. The famous celebrities who appear as contestants on the show actively promote the product on their social media.
Financial Plan:
Mamaearth is the first unicorn of 2022 and the 44th since January 2021, which has turned profitable in FY21 with a four-fold jump in its collection.
MamaEarth Revenue Breakdown:
| Sales | FY21 | FY20 |
| Domestic | Rs.452.6Cr | Rs.108.9Cr |
| International | Rs.8.2Cr | Rs.0.86Cr |
MamaEarth Expenses Breakdown:
| Expenses | FY21 | FY20 |
| Marketing costs | Rs.192.23Cr | Rs.49.24Cr |
| Cost of material consumed | Rs.133.1Cr | Rs.38.3Cr |
| IT and Payment gateway costs | Rs.6Cr | Rs.1.93Cr |
| Transportation and Packaging costs | Rs.62.7Cr | Rs.15.02Cr |
| Employee Benefit Expenses | Rs.27.82Cr | Rs.8.51Cr |
| Other Operating and Admin costs | Rs.13.75Cr | Rs.4.93Cr |
MamaEarth Financials:
| FY21 | FY20 | |
| Revenues | Rs.461Cr | Rs.109.8Cr |
| Expenses | Rs.435.6Cr | Rs.117.93Cr |
| EBITDA Margin | 6.50% | -4.99% |
| Profit/Loss | Loss of Rs.5.92Cr | Profit of Rs.24.59Cr |
Despite the Covid-19 Pandemic affecting several companies, MamaEarth crossed Rs.460 Crores in sales in FY21. At the moment, it’s one of the most successful D2C brands in India and the company’s financial numbers suggest the same.
Partnerships and Acquisitions:
Partnerships:
- On February 26, 2021, MamaEarth teamed up with the famous TV personality, Anita Hassanandani, who gave birth to her baby boy. The company’s strategic partnership with the new mother is very relevant and the company expects to see development in the hair care, skin care, and baby care sectors.
- On March 20, 2021, MamaEarth released a 30-second TV commercial in which Shilpa Shetty Kundra collaborated with the brand to promote the Vitamin C face wash. The main purpose was to promote the phrase “Goodness Within”.
Acquisitions:
MamaEarth has acquired 3 companies to date. The list is given below:
- BBlunt is a Mumbai-based hair care and styling products business. MamaEarth acquired it on February 14, 2021, with Rs.134 Crores. The two-decade-old salon business will continue to operate as an independent entity. From the founding team, Adhuna Bhabani, Osh Bhabani, and Avan Contractor will be creative directors and Spoorthy Shetty will be CEO.
- Momspresso and Mom Espresso MyMoney, founded in 2010 by Vishal Gupta, Asif Mohammed, and Prasanth Sinha cater to women, with a focus on mothers. The platform claims to have so far onboarded 60,000 content creators in 10 languages, a community of 30 million women, and over 2,00,000 micro-influencers connected to 50 million consumers. The experience of the founding team and the capabilities of the platform show immense potential in expanding the content platform of MamaEarth and enlightening, educating, and supporting consumers in making informed decisions through high-quality, user-generated content in beauty, health, fashion, lifestyle, pregnancy, motherhood, and kids.
Competition:
MamaEarth faces immense competition from brands like Johnson & Johnson, Mom&me, Himalaya, Proctor and Gamble, Kimberly Clark, etc., to name a few. There are a large number of firms that provide products in areas such as baby clothes, toys, and accessories that compete directly with Mamaearth. Furthermore, more and more businesses are springing up with a toxin-free philosophy these days, increasing MamaEarth’s overall competition.
Future Plans:
MamaEarth aims to build into an Rs.500 Crores brand by acquiring 5 million new consumers in the next three years. It is also focusing on launching new brands which are focused on the needs of new-age and millennial customers.
Furthermore, the company also aims to strengthen its brand awareness in the upcoming years with the help of influencer marketing and targeted digital funnels. MamaEarth’s unique selling point of toxin-free and harmful chemicals in their products has helped them in building a loyal consumer base.
In the business environment, green consumerism which opts for pro-environmental attitudes along with the inspiration for social help needs to be expanded by all the companies, specifically the ones which bring skin care-related products.
The health awareness of people has slowly begun from the preference for organic food products in the place of normal food items to the green and zero chemical products to be used on the skin.
FAQs:
Is MamaEarth an Indian Company?
It is an Indian brand based out of Gurgaon, Haryana.
Is MamaEarth Ayurvedic?
Mamaearth is an innovative brand that uses Ayurveda and science to develop natural, toxin-free products.
Is Mamaearth organic?
The products delivered by Mamaearth are 100% natural and manufactured using organic and safe ingredients. Mamaearth takes pride in promoting a non-toxic and chemical-free product catalog.
Is Mamaearth vegan?
Mamaearth is certified “cruelty-free” by People for the Ethical Treatment of Animals (PETA). It does not promote or conduct animal testing.
Is Mamaearth Shampoo sulphate-free?
Mamaearth relies on natural ingredients. The shampoo is sulphate-free and does not harm the user.
