Ghazal Alagh: Changing The Beauty Landscape

With a vision to change the beauty landscape of India, Ghazal Alagh turned mompreneur and introduced a D2C company calledMamaearthin the beauty and personal care segment. 

The first-time entrepreneur had crystal clarity in the positioning of the brand. For the home-grown startup, Mamaearth, the proposition was simple, as it started with a baby care product line. Eventually, the founder listened to customers’ dynamic needs and extended the brand, making it multi-segment. 

The parent company Honasa Consumer became the house of brands which acquired Acqualogica, The Derma Co., BBlunt, DrSheth’s and the content platform Mompresso. 

On Strategic Brand Building 

In January 2022, Mamaearth joined the unicorn club. Honest Consumer secured an investment of $ 52 million, which was led by Sequoia at a valuation of $1.2 billion. “Our company is built on the proposition of being honest, natural, and safe which has contributed to the exponential growth of Mamaearth,” says Ghazal Alagh, Co-founder and CIO, of Mamaearth. 

The Ghazal and Varun Alagh-led D2C unicorn Mamaearth turned profitable in the financial year ending March 31, 2022. According to media reports, the startup posted a net profit of Rs 19.8 crore on a standalone basis in FY2022 against a net loss of Rs 1,332.2 crore in FY2021. Accelerating the company’s leadership in the segment, it has entered 15 cities with 35 EBOs in less than a year, as of December 2022.

In December 2022, Mamaearth's parent company filed initial public offering (IPO) papers. The company was seeking a USD 3 billion valuation for its upcoming IPO. The intended valuation of around $3 billion would be in multiples of 1,000 times the company's profits, on which users have been raising concerns.

Alagh clears the air on all the noise around the valuation.“In our DRHP as is the standard practice, there is no mention of valuation. Valuation discovery is a process which will take place over time as we get into deeper conversations with the investor community. We have not quoted or subscribed to the valuation numbers,” says Alagh. As of now, there is no update on the company’s IPO. 

On Women in Entrepreneurship

Alagh plays another critical role as an angel investor. To incubate more women entrepreneurs, she ensures that she is available for mentorship as well. 

Opening up in her social media post, Alagh says, “Why do these biases exist? When I experienced this, I was filled with self-doubt and had to fight that feeling for a long time.”According to her, “It is also important that we create a community for women in leadership roles where they feel supported and encouraged.”

On the Way Forward 

Mamaearth stayed profitable in FY 2022 with its revenue touching Rs 1,000 crore. With constant attention to business expansion, Mamaearth is currently focusing on improving its portfolio across borders and strengthening its physical presence by opening more exclusive brand outlets.

Mamaearth’s co-founder Ghazal Alaghnot only strives to explore more ways to grow and address the growing market, but she also goes all out to keep her company relevant for the community at large.