Network18 Exclusive: Mamaearth IPO still in process, engaged with regulators, says CEO Varun Alagh

Varun Alagh, Co-founder and CEO of Mamaearth

Mamaearth CEO and co-founder Varun Alagh on March 27 “dismissed” as baseless the reports that said the skincare company had scrapped its initial public offering (IPO) plan.

“Reports of withdrawal of Mamaearth IPO are baseless. We are still in the IPO process, engaging with the regulators and bankers. We should get approval on IPO prospectus by next month,” Alagh told CNBC-TV18 in an interview.

He said that beauty and personalisation was a mature market in India and added they were “still some time away from finalising valuations”.

Also Read | Mamaearth's parent puts IPO on hold: Report

“There no change in the size of the IPO offering. The regulator takes a 90-120 day period to assess. We are hopeful to get approval for DRHP from the Securities and Exchange Board of India (SEBI) by next month,” he added.

“Queries are a part of the regulation process. Our first focus is to get the approval our way. We have never shared the valuation number, and early feedback from investors is positive.”

He said that the company expects “significant interest” in the IPO. “We are not worried about it”, Alagh said, adding Mamaearth had shared its responses to regulators’ queries.

Also Read | Mamaearth co-founder's tip for entrepreneurs: 'If you think your idea has potential...'

Earlier in the day, news agency Reuters reported that the skincare start-up Mamaearth’s parent company Honasa Consumer had put the IPO on hold because of weak market conditions. The report quoted two sources as saying that the IPO was on “wait and watch” mode.

Honasa Consumer filed its documents in December, with plans to raise about $200-300 million through new equity issue and offer for sale (OFS) of some existing shares, which could have valued the company at up to $3 billion.

Also Read | Mamaearth IPO: Five key highlights from its DRHP

Mamaearth is backed by investors such as Sequoia Capital and Belgium's Sofina. The sources had said turbulence in stock markets globally amid worries about the financial health of banks has contributed to the hold.

The start-up was founded in 2016 by the husband and wife duo of Varun and Ghazal Alagh. It was last valued at $1.2 billion in January 2022.

Watch the full interview here