Success Story of Mama Earth

“Be undeniably good. No marketing effort or social media buzzword can be a substitute for that.”
                                                –Anthony Volodkin, founder, Hype Maching

Introduction

Start-up’s are formed to solve problems and to fill the gap in the market and In recent years pre-Covid we have seen a Market trend of finding Toxic free products , Nature products which does not Harm skin , hair etc.  that’s how Mamaearth started by a Problem faced by Parents to their new born child about the products which are used to his skin care and are full of Harmful Chemicals and from there An idea of Manufacturing Chemical free products , Organic Products Came into force .

In 2016 Ghazal Alagh and Varun Alagh Stared Mamaearth by Incorporating under the Parent organisation Honasa Consumer Pvt. Ltd. With its Headquarter based in Gurugram , Haryana With the Aim to solve the Common parenting problem by providing Toxic free and Chemical free products for  Their babies. When there was no proper regulation for companies to meet safety regulations in products . Mamaearth aims to provide safe products approved by international standards and norms with the Magical blend of nature . And currently Mamaearth is the 1st Asian Brand with “MADE SAFE” certification .

About the Founders and their equity in Company

Mamaearth Chief Father Varun Alagh is the co-founder and director of Mamaearth’s Get Stuff Done. Alongside a BE degree in Electrical Engineering from Delhi College of Engineering, Varun Alagh is an MBA graduate from XLRI Jamshedpur. He previously held positions at Hindustan Unilever, Smirnoff and The Coca-Cola Company before joining Honasa Consumer Pvt. Ltd. And currently he hold Majority stake of the Company which is 38.72%  as of March , 2022 .

Alongside Ghazal Alagh, The “Mother” is  Mamaearth’s Chief Innovation Office. A graduate of the School of Visual Arts and the New York Academy of Art, Ghazal has completed intensive courses in Modern Art and Applied Art and is ranked among the top 10 female artists in India, nationally and internationally. Ghazal received his BCA in Information Technology from Punjab University and Currently she holds 3.58% stake in the Company .

Analysing the 3 models of Mamaearth :

  1. Product and Services

The Company was initially started with six products in baby care which is the Main focus of the company initially . And now it has about 80 SKUs under the Mamaearth umbrella offer baby care, hair care, skin care and more. Mamaearth caters to babies and others with its unique range of products. In addition to India’s first bamboo-based baby wipes, and fennel tummy rolls for colic relief and 100% natural plant-based toothpaste, Mamaearth has a host of other innovative products to offer.

In addition, it offers a wide range of skin and hair care products with popular natural ingredients such as onion, ubtan, tea tree oil , vitamin C, Argan, coconut and
charcoal with a variety of products ranging from serum to stretch mark remover to sun protection, it has extended to babies and their mothers. Motherhood is at the heart of the brand. The Mums range of onions is a fan favourite.

And Now the Company is going into a higher range which Includes unique form of perfumes for ex- Mamaearth has introduced a perfume which gives different smell on different people by reacting to their skin oils .

  • Customer Acquisition Strategy

To emphasize the importance of motherhood, Mamaearth decided to speak directly to mothers. As customers began using Mamaearth products, the founders were confident that word of mouth would spread like wildfire. They also used influencer marketing on social media to spread the word.

Connecting with like-minded parents who only wanted the best for their babies was the main strategy. Digital content is the only means to attract customers . The Lean Innovation Cycle, designed to scale, launch and learn quickly, is the key project helping Mamaearth achieve its current growth rate. They focused on specific customer needs through lean innovation. Product concepts could also be validated and improved in real time through rapid experimentation. Higher customer satisfaction
and reduced time-to-market.
 It has an online-first business model based on publishing offers on D2C platforms (Amazon, Flipkart, etc.)) and their subsequent sale, as well as the sale of products displayed in traditional shops. Mamaearth takes an omnichannel approach with an innovative product that drives growth out of the blue system.
Mamaearth is one of the few positive plastic brands in India. The company strives to preserve Mother Earth for future generations of babies. With an initiative called “Let’s Recycle,” and also Company has a pledge to grow 1 million trees in 5 years .

  • Revenue and Investment Model

The Company became the fastest growing Company to cross 100 crore turnover in just 4 years Mamaearth reported revenue of Rs 461 crore  in FY21, which has quadrupled from Rs. 109.8 crore in the last FY. Domestic sales contributed around 98% of Mamaearth’s revenue, while worldwide sales accounted for the remaining portion, which also grew 9.5 times.

The Company “Became the first start-up to enter the unicorn club in 2022 with a $52 million fundraise. The company is now valued at $1.2 billion”.1

Future Plans

Mamaearth is planning to build into a 500 crore brand by now entering into Tier-II , III cities with proving more offline stores and new variety of products

Mamaearth has turned into a profitable company by receiving Rs 460 crore in revenue in 2021 and is hoping to an IPO with $3bn of valuation .

References

  1. https://www.inventiva.co.in/business/success-story-mamaearth-company/
  2. https://startuptalky.com/mamaearth-success-story/
  3. https://www.business-standard.com/article/companies/we-are-close-to-doubling-revenue-in-fy22-mamaearth-ceo-varun-alagh-122010200456_1.html
  4. yourstory.com/smbstory/mothers-day-mamaearth-varun-ghazal-alagh-entrepreneur-gurugram/amp
  1. https://www.business-standard.com/article/companies/we-are-close-to-doubling-revenue-in-fy22-mamaearth-ceo-varun-alagh-122010200456_1.html

Aishwarya Says:

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