Started in 2016, Honasa Consumer Pvt. Ltd. (HCPL), the parent company of Mamaearth, The Derma Co., Ayuga, and Aqualogica, is a house of brands creating purpose-driven personal care brands for millennials. It is catering to the digitally savvy audience across India and Bharat, with Bharat showing phenomenal potential in wanting unique and innovative product propositions.
HCPL is a digital-first brand and it has helped it to reach out to the consumers directly and connect with them to understand their requirements and provide them with products that serve their needs. “We are on a constant quest to solve millennial personal care concerns, so as and when we identify a gap, we will start working towards filling it, either with our current portfolio of brands or venture into launching new brands,” Ghazal Alagh and Varun Alagh, Co-Founders of Mamaearth said.
The company is currently catering to over 19,000 pin codes and more than 500 cities in India across the country. The brand retails through the brand website and marketplaces like Amazon, Flipkart, Nykaa, and FirstCry amongst others.
Due to the demand for products offline, the company launched Mamaearth across offline channels. Recently, Mamaearth opened its first EBO in Delhi and 2 EBOs in Mumbai and will be retailing all the product ranges of baby care along with beauty and personal care.
“Over the last 18-20 months, offline has shown tremendous growth in terms of scale and revenue. Every brand needs to be selling at places where their consumers shop; hence offline will continue to grow in the coming year. We have recently ventured into Mamaerath Exclusive Brand Outlets last year, as a strategic experiment and we will decide the next steps on that basis of performance, but the initial reads are very promising. However, we are a digital-first company, and our focus will always be to build digital-first brands,” Ghazal Alagh elaborated.
House of Brands
As a company, its goal is to take the highest share of the wallet of the consumer in the beauty and personal care space. While building Mamaearth, the co-founders realized that they were not only building a great brand but we were also building some great capabilities as a corporate and those capabilities might be R&D, marketing to millennials, technology stacks, D2C muscle, etc and those capabilities can actually be used to build new mixes and hence take the share of that proposition that the consumer is looking for.
Apart from Mamaearth, The Derma Company, and Aqualogica, the other brands that are there in the kitty of HCPL are Ayuga, Dr Sheth, and BBlunt.
“Our core strength is building and hence our strategy would always be skewed towards building our own brands and launching our own mixes. That said, wherever we see an opportunity where we feel that a brand can be a very good add-on to our portfolio, we will not hesitate from adding that. We will also look at inorganic as a mode of expansion, but otherwise organic is what we are far more keen and excited about,” Varun Alagh stated.
“We want to make Honasa Consumer Pvt. Ltd. a leading House of brands of digital-first brands and become the number one choice of Indian millennials in the beauty and personal space,” he further added.
Backed by Sequoia Capital India, Sofina SA, Fireside Ventures, and Stellaris Venture Partners, HCPL is set to become a billion-dollar FMCG conglomerate in the next 5 years - spread across the globe but connected through a digital center of excellence.
For the coming year, the brand is focusing on building its new brands and venturing into new categories with existing brands. Aqualogica is a new brand that it launched this year, and the company will direct all its efforts towards building that.
Apart from this, HCPL has entered into the color cosmetics category with Mamaearth bringing with it an innovative line of toxin-free, made safe certified products across sub-categories like liquid lipsticks, bullet lipsticks, kajals, lip balms, and more innovations in the pipeline.
“At present, 70 percent of our revenue comes from online channels and the rest 30 percent from offline channels. We are servicing almost 18-19,000 pin codes from our D2C channel and 60 percent of our business comes from Tier-II and beyond,” Ghazal concluded.
HCPL was announced as the first unicorn of 2022 raising a $52 million round led by Sequoia. The round witnessed participation by Sofina Ventures SA, the Belgium-based investment company, and Evolvence, a UAE-based India-focused fund.