Mamaearth Cofounder Ghazal Alagh Denies IPO Valuation Rumours

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ghazal alagh
ghazal alagh

Replying to social media rumors and news reports on the company’s assessment for its initial public offering (IPO), Mamaearth cofounder Ghazal Alagh said the stable has neither quoted nor subscribed to the assessment numbers doing the rounds.

“Valuation uncovering is a process which will take place over period as we get into profound talks with the depositor community,” Alagh inscribed in a LinkedIn post.

ET described on December 29 that Honasa Consumer Ltd, the parent corporation of Mamaearth, had filed its draft red herring list with the Securities and Exchange Board of India (Sebi) for an IPO.

The offering will contain a fresh issuance of shares worth Rs 400 crore besides an offer-for-sale (OFS) component including 46.82 million shares.

The OFS will understand founders Varun Alagh and Ghazal Alagh, depositors such as Sofina, Fireside Ventures, Evolvence India, Stellaris, and seraph investors such as Snapdeal founders Kunal Bahl, Rohit Bansal, Rishabh Mariwala of FMCG giant Marico, and performer Shilpa Shetty Kundra, part-sell their stakes in the stable.

Persons have taken to Twitter to raise red flags around the company’s IPO plans.

“Even if it is supposed that funding of Rs 400 crore will take the profits of the company to Rs 240 crore and presumptuous 100% revenue to be given as extra and the startup grows further at a rising rate, it will take a poor investor 100 years (Val Rs 24,000 crore) to convalesce his money,” said one of the users, who is a leased accountant.

In January 2022, Mamaearth publicized that its parent company Honasa Consumer had raised $52 million in subsidy led by Sequoia Global at a valuation of $1.15 billion, assembling the unicorn club.