Honasa Consumer Private Ltd, the very first unicorn of 2022 and parent organization of brands that include Mamaearth, The Derma Co, and BBlunt, has filed review papers with the Securities and exchange board for listing in order to raise capital through a pairing of a fresh issue and an offer-for-sale.
The husband-wife squad of Varun and Ghazal Alagh (of ‘Shark Tank’ celebrity) co-founded the fast-growing D2C (direct-to-consumer) organization in 2016. It emerged as a unicorn after having to raise $52 million at a capitalization of $1.2 billion in a crowdfunding session directed by top Venture capital firm Sequoia Capital in January.
According to the proposal red herring disclosure statement analyzed by Moneycontrol, the new issue size is up to Rs 400 crore, and the OFS component by a team of external investors and personal shareholders is up to 46,819,635 ordinary shares.
The Alaghs, Sofina Ventures SA, Evolvence, Fireside Ventures, Stellaris Venture Partners, Snapdeal founder Kunal Bahl, Bollywood actress Shilpa Shetty Kundra, Rishabh Harsh Mariwala, and Rohit Kumar Bansal are among the shareholders who will dissolve their stakes. Sequoia Capital won’t be involved in the OFS.
“The combined size of the IPO could range between Rs 2,400 crore and Rs 3,000 crore, though the exact quantum at the time of listing would depend on final valuations,” said one of the persons cited above.
“The plan is to launch the deal in March next year but that timeline is subject to market conditions,” a second person told Moneycontrol.
Based on a third source, Honasa Consumer was able to grow its business thanks to the impactful brand and product management, the appropriate hybrid approach, as well as other factors.
All three spoke with Moneycontrol under the obligation to remain anonymous. Honasa Consumer did not respond to a follow-up email request sent at the time of submitting this story.
The proceeds from the sale of the IPO will be spent on advertising expenses to strengthen brand exposure and awareness, the creation of new exclusive outlet stores, funding in BBlunt for the opening of new salons, standard business purposes, and inorganic progress.
Mamaearth’s declaration with the market regulator follows one issued in January by a rival in the competitive D2C sector Warburg Pincus-backed boat. The electronics company that specializes in audio aims to raise approximately Rs 2,000 crore.
Financial institutions working on the IPO include Kotak Mahindra Capital, JM Financial, Citi, and JP Morgan. Cyril Amarchand Mangaldas, IndusLaw, and Khaitan & Co. are the legal adviser.
