Mamaearth: Bringing Toxin-Free, Natural Skin Care Products To India

Rishabh Rathi Rishabh Rathi
Jan 22, 2021 10 min read
Mamaearth: Bringing Toxin-Free, Natural Skin Care Products To India

When it comes to the cosmetic industry, consumers are always concerned about the process through which the products are manufactured. This is why we now see a huge buzz about organic products, natural hair care items, and pure skin care products. People want to ensure that they are using the best quality products.

Mamaearth was founded in 2016 to make skincare routines a little chic but with utmost care. Ghazal Alagh and Varun Alagh founded Mamaearth. Headquartered in Gurugram (India), and is an online platform that offers natural and toxin-free skin care products.

Mamaearth - Company Highlights

Startup Name Mamaearth
Headquarters Gurugram, India
Sector Personal Products
Founders Ghazal Alagh and Varun Alagh
Founded 2016
Parent Organization Honasa Consumer Pvt. Ltd.

Mamaearth - About and How it Works
Mamaearth - Country/Origin
Mamaearth - Founders/Owners and Team
How was Mamaearth Started?
Mamaearth - Target Market Size
Mamaearth - Product/Services
Mamaearth - Startup Launch
Mamaearth - Business Model and Revenue Model
Mamaearth - Startup Challenges
Mamaearth - Competitors
Mamaearth - Funding and Investors
Mamaearth - Growth
Mamaearth - Name and Logo
Mamaearth - Awards
Mamaearth - Future Plans
Mamaearth - FAQs

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Healthcare [/tag/healthcare-startup/] facilities and medicines are the need ofthe hour. With an ever increasing population, India the second-largest populatedcountry, is also growing the number of diseases along with. This requires anincrease in the pharmaceutical industries and companies, and heโ€ฆ

Mamaearth - About and How it Works

Through an innovative product line, Mamaearth has tried to solve a common Indian parenting problem. In a country where most of the baby products available do not meet safety regulations, Mamaearth offers products that are safe by international standards and loaded with the goodness of nature.

Mamaearth is the 1st Asian brand with a โ€œMADE SAFEโ€ certification. Their products are free of all known toxins that are banned in most countries. More than just a brand, it makes products out of love and care.

Mamaearth - Country/Origin

Mamaearth is an Indian company with its headquarters is in Gurugram, (Gurgaon) India.

Mamaearth - Founders/Owners and Team

Mamaearth Co-founders, Ghazal Alagh and Varun Alagh incorporated Honasa Consumer Private Limited in 2016 and launched the Mamaearth range of toxin-free products in December that year. The couple had made it their mission to make safe, chemical-free products available to all babies in India.

Ghazal Alagh and Varun Alagh - Owners of Mamaearth
Ghazal Alagh and Varun Alagh - Owner, Mamaearth

Mamaearth Founder, Varun Alagh is from the FMCG industry and has worked with Coca-Cola and Hindustan Lever. He is known for the brand management expertise he brings to the table. He holds the post of Chief-dad at Mamaearth.

While Mamaearth Co-founder, Ghazal Alagh worked as a corporate trainer in the IT sector, and she is the chief mama at Mamaearth.

โ€œWe are a 'mum-powered' company and work with a large number of mothers who are involved in the process, right from ideation, conceptualization to the actual product launch. We believe this connection with mothers will continue to be the biggest driver of success. We have more than 200 young moms on board who help us in conceptualizing and formulating the products. The moms then test these products, and only those with great feedback are approved for mass production,โ€ says Ghazal Alagh.

The workplace culture is open, ambitious, experiment-oriented, and not rigid in terms of hierarchy. And this makes Mamaearth a fun place to work at.

How was Mamaearth Started?

In the US, there is strong awareness about the harmful chemicals found in the most commonly used personal care and baby care products. During Ghazalโ€™s stay there, she became more conscious of the kind of products she was using and started checking the ingredients list before buying any baby care item.

When Varun and Ghazal were expecting their first child (the couple were in India at the time), they realized that the baby care products they came across contained harmful toxins and safer alternatives weren't available. As a result, they started ordering products from the US but that turned out to be a costly and inconvenient arrangement. They also realized that it wasnโ€™t just them; there are a lot of parents in India struggling with the same concern. Since the husband-wife duo couldnโ€™t find any safe products for babies in India, they stopped using Indian products and imported reliable products manufactured in other countries.

The problem gave rise to the idea of creating Mamaearth and it soon became Asia's 1st brand to offer "MADE SAFE" certified products that were toxin-free and loaded with the natural goodness babies deserve.

โ€œWe are on a mission to reduce parental stress & are continually improving and innovating to make the world a safer place for both babies and their parents,โ€ adds Ghazal Alagh.

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Mamaearth - Target Market Size

According to the estimates by market research company Technavio, the baby care market in India is expected to grow at 17 percent CAGR in revenue in the next three years. In terms of the products available, this market has been segmented as follows: baby apparel segment, baby toys segment, baby cosmetics, baby food, baby accessories, and baby diapers.

Mamaearth - Product/Services

Mamaearth caters to baby care, hair care, and skincare with over 80 natural products under its umbrella. Some of the most innovative products developed by Mamaearth include Indiaโ€™s first bamboo-based baby wipes, easy tummy roll-on with hing and fennel for colic and digestion relief, and 100% natural plant-based toothpaste for children between 0-10 years. It also has a range of skin and hair care products around popular natural ingredients such as onion, ubtan, tea tree, vitamin C, argan, coco, and charcoal.

It has expanded to not only to cater to babies but their mothers as well from sunscreen to stretch mark removal serum. It focuses on all aspects of motherhood. A fan favourite is their onion range of products for mothers.

Mamaearth - Startup Launch

Mamaearth Products
Mamaearth Products

The Mamaearth team believes in mum-power and decided to directly target mothers. The founders were confident that once the customers used Mamaearth products, word of mouth publicity would work wonders for the company. The team also leveraged the power of social media through influencer marketing.

The primary strategy was to resonate with like-minded parents who wanted nothing but the best for their babies. The customer acquisition strategy is purely focused on digital content.

โ€œWe want consumers to read about the problems that our products solve and why our products are the best in the market. We work with over 500 mom bloggers. We are also innovating constantly to stay relevant and cater to the dynamic market needs,โ€ said Ghazal Alagh.

The most significant project which helped Mamaearth achieve the current growth rate was the lean innovation cycle; it was geared to launch, learn, and scale quickly. Lean innovation helped them focus on customer-specific needs identification. Apart from this, rapid experimentation allowed the validation and improvement of many product concepts on a real-time basis. It aided in increased customer satisfaction and reduced the time-to-market.

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Mamaearth - Business and Revenue Model

Mamaearth formulates products that are then produced by contract manufacturers under a license from the Mamaearth brand. Mamaearth is a trademark owned by Honasa Consumer Pvt. Ltd.

Mamaearth is a digital-first FMCG company whose revenue model is based on the sale of tangible products to the consumers through D2C platforms (Amazon, Flipkart, etc.) and traditional offline stores. The team at Mamaearth follow the blue strategy with an omni-channel presence wherein innovative products steer growth.

Mamaearth - Startup Challenges

Every organization faces problems in its early years; Mamaearth was no different. Early in its launch, Mamaearth was hit with a growth hurdle wherein it was not able to expand as desired. The team realized the problem had to do with not being sharp about the target cohort. And this lead to futile marketing expenditure coupled with minimal customer acquisition.

The core team did an internal re-think and arrived at the decision to redefine the target group as well as the communication strategy around the target group. Once the team implemented the strategy, it could see significant gains in a short period.

Mamaearth - Competitors

Mamaearth faces immense competition directly and indirectly from MNCs such as Himalaya and Johnson & Johnson as well as e-commerce portals like Nykaa. While there are several companies โ€“ both corporates and startups in categories such as baby apparel, baby toys, and baby accessories โ€“ the cosmetics category is dominated by organized players like Johnson & Johnson, Kimberly Clark, Procter & Gamble, and Unilever. Nowadays more and more companies are popping up with the toxin-free ideology.

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Mamaearth - Funding and Investors

Mamaearth raised a total of $50.3 million in funding over 6 rounds. The latest funding was raised on 22 July 2021 from an equity round.

Date Stage Amount Investor
December 2016 Seed $125K Fireside Ventures
September 2017 Venture $1 Million Fireside Ventures
April 2018 Venture $250K Shilpa Shetty
September 2018 Series A $4 Million Fireside Ventures, Stellaris Venture Partners
January 2020 Series B $17 Million Sequoia Capital India
July 22, 2021 Equity Round $27 Million Sofina Ventures

In 2016, Mamaearth raised a pre-seed round of $125,000 from a consortium of investors. In 2018, it raised $4 million in Series A funding led by Stellaris Ventures, Fireside Ventures, Marico's Rishabh Mariwala who manages Sharp Ventures, and Snapdeal founders Kunal Bahl and Rohit Bansal.

In April 2018, Shilpa Shetty Kundra also came on board as an equity investor. In January 2020, Mamaearth raised INR 140 crores in a funding round led by Sequoia India with participation from existing investors โ€“ Fireside Ventures, Stellaris Venture Partners, and Sharp ventures.

Mamaearth raised $27 million from a recent round in July 22, 2021. This was an equity round led by Sofina Ventures. ย 

Mamaearth - Growth

When Mamaearth was launched in 2016, it had only six products in its catalog. The product range now comprises more than 80 natural and toxin-free products that are used by over 1.5 million Indian consumers.

Mamaearth witnessed a growth in its operating revenue, which jumped to Rs 110 crores in FY20, which stood at Rs 16.8 crores at the end of FY19. The company has also restricted its losses to Rs 5.9 crores, which is pretty impressive. According to a report published by the investment bank, Jefferies, the company may cross Rs 500 crore mark in FY21.

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Mamaearth is an online retailer specializing in baby and toddler products.

Mamaearth Logo
Mamaearth Logo

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Mamaearth - Awards

Mamaearth was recognized as โ€œOne of the Best Brandsโ€ in India at the 2nd edition of The ET Brand Festival in 2019.

Mamaearth - Future Plans

โ€œOur plan is to build Mamaearth into an Rs. 500 crore brand by acquiring five million new consumers in the next three years. We are also looking at launching more brands under the Honasa umbrella, which would be focused on the needs of the new-age, millennial consumers,โ€ Ghazal Alagh further adds.

Mamaearth - FAQs

Is Mamaearth an Indian Brand?

The Mamaearth company is an India brand and is based out of Gurugram, Haryana. It was founded by Varun and Ghazal Alagh in 2016 to provide toxin-free, natural baby care, skin care, and hair care products.

Are Mamaearth products good?

Mamaearth proclaims itself as Asiaโ€™s first brand to be certified 100% non-toxic by "MADE SAFE". The ingredients used to manufacture Mamaearth's products are completely natural. Thus, they are safe to use.

Is Mamaearth Ayurvedic?

Mamaearth is an innovative brand that uses Ayurveda and science to develop natural, toxin-free products.

Who is the owner of Mamaearth?

Mamaearth owners are Varun Alagh and Ghazal Alagh who are the founders as well.

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 sulfate-free?

Mamaearth relies on natural ingredients. The shampoo is sulphate-free and does not harm the user.

Is Mamaearth available in stores?

Mamaearth products can be found in medical stores. One can also purchase them online at discounted rates.

How do you buy Mamaearth products?

Mamaearth products are sold online at Nykaa, Amazon and such as well as in brick-and-mortar medical stores.

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