D2C brand Mamaearth turns profitable in FY22

Representative photo

Honasa Consumer Pvt. Ltd, the parent company of direct-to-consumer (D2C) skincare and beauty brand Mamaearth, posted a net profit of close to Rs 20 crore and also saw its revenue surge by 102 percent to Rs 952 crore in the fiscal compared to the year-ago period, as per RoC filings, sourced from Tofler.

In FY22, the company spent Rs 391 crore on advertising, while its cost of materials and employee benefit expenses increased to Rs 281 crore and nearly Rs 79 crore, respectively.

In addition, the Gurugram-based company spent Rs 16.7 crore on ESOPs. The total expense stood at Rs 942 crore and clocked a profit of Rs 14.4 crore.

The Tiger Global-backed brand also improved its EBITDA margin to 3.89 percent in FY22 from -280 percent in FY21.

Founded by Ghazal and Varun Alagh, the D2C brand joined the coveted unicorn club earlier this year after raising $52 million at a $1.2 billion valuation. The brand that competes with Nykaa, SUGAR Cosmetics, Plum is reportedly planning to launch its IPO by next year.