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Building Lendingkart | All things Start ups, Finance and Growth

Mamaearth is not a Unicorn anymore, but could it still be the next Hindustan Unilever? In just two months, they’ve lost 40-50% of their value. By March 2024, they seemed to have cracked the profitability code. Fast forward to September 2024, and: → Reported a ₹19 crore loss, compared to a ₹40 crore profit last quarter. → 7% YoY revenue dip. Now, we know about the ₹63 crore expired inventory write-off fiasco. But beyond this one-time adjustment lies a bigger story—the on-ground challenges of scaling offline. Yet, Honasa Consumer Ltd., Mamaearth’s parent company, remains the only D2C startup in India to hit the ₹2,000 crore revenue milestone. And they’re not just betting on one brand—they’ve built an impressive portfolio, including: 👉🏾 Dr. Sheth’s 👉🏾 Aqualogica 👉🏾 BBlunt 👉🏾 The Derma Co., and others! These are brands people genuinely love, and the strategy feels eerily similar to Hindustan Unilever’s playbook: → Build one strong brand. → Scale massively by acquiring and growing better brands using your distribution, marketing, and production powerhouses. For context, when Unilever came to India in 1933, it already had 45 years of global experience. Yet, it took them 60 years to cross the ₹2,000 crore revenue mark in India in 1993-94. Mamaearth has managed this feat in just 8 years. While I’m no stock expert, I genuinely admire what Varun and Ghazal Alagh have built. They basically taught India the power of influencer marketing. This might be a setback, but it’s far from game over. Mamaearth has the potential to bounce back stronger. What’s your take—could Mamaearth follow HUL’s footsteps, or is the D2C model too volatile for this kind of scale?

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Anas Mev

Building HastIndia - India's ETSY for next 100M | Ex Temasek | Social Impact | XLRI Jamshedpur

5d

"It took India 60 years to cross a $1T economy but less than 8 years to add another $1T" Oh, did we just miss an economics class?

Anurag Jain

Building Upside Health | Ex Co-founder at Milkbasket.com | XLRI | Ex Indian Army

5d

You will surely witness a fight back Rupal Madhup Mamaearth

Pratik Bhansali

(Office of Pratik Bhansali) Ace Investor, Industrialist & Mentor ! Views are personal ! Addicted to Black Coffee ! Humanity First !! India is my inspiration ! Jai Hind !! 🇮🇳

5d

Too early to comment Rupal ! Sustained growth over decades is how a company follows fundamentals and robust business practices is important ! So its gonna be wait and watch Best wishes

Asuk Alam

Hi I am Asuk Alam | - "AI Expert | Reviewing AI Features & Innovations" -

2m

Love this

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CA Simarpreet Singh Gulati

Associate Director at UBS - CFO Divisional Controller | CFO Business Partner | ex-Credit Suisse | ex-PwC | Chartered Accountant

5d

Well explained! However, while comparing the Rs.2000 crore revenue mark for HUL and Mamaearth, we also need to factor in the inflation. Value of Rs.2000 crore in 1994 vs 2024 (over a period of 30 years) is drastically different.

Srirekha Maradana

Founder at Raaya Corp | Executive Director at In2Minds Foundation | Co-Founder at Itaka Consultancy Services

4d

My dad was earning less than 5k i think in early 90s but my first salary was much higher than that 2000s. Does that mean I’m better? Nah, he actually owns 2 houses and almost no debts/loans ever, he was able to give quality education to his children, retirement plan, etc. etc. on the other hand, me home under loan, car under loan, quality eduction, let’s not go there. I need to take personal loan to pay the fees! Money lost its value overtime and numbers don’t speak the same language anymore with times changed. Keeping these comparisons aside, I think they have a long way to go, and strongly hope they bounce back much stronger as a grown grown and superloved brand of India.

Aditya Rajpal

Aspiring Business-Driven Talent Architect | Relentlessly Pursuing Excellence in Recruitment Strategy | Committed to Crafting High-Impact, Elite Teams | On a Mission to Be Your Unmatched Multilingual Partner in Success

2h

Mamaearth's success in achieving significant milestones can be credited to its exceptional marketing strategies, driving large-scale customer acquisition. For example, if 2% of India’s population purchased at an average order value of ₹500, it would yield ₹1,400 crore in revenue. However, in the highly competitive personal care segment, consistent sales require more than marketing—sustained growth depends on product quality and customer loyalty, areas where the brand may face challenges.

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Ankit Jain

Associate Director @ InCred Wealth

5d

Rupal Madhup 1. Comparing the numbers of 1933, 1993 and 2024 doesn't make any sense.. better you compare the data of both the companies in the same time frame. It would be a better pear comparison. 2. If not the figures in Cr for both the companies, it can be on percentage terms for EBIDTA, PAT and their QoQ, YoY growth with themselves. 3. Also, sometimes the price of shares show different characteristics with comparison to their book value, PE etc.. Therefore such a post can be treated as a paid promotion.. and if so.. it should be mentioned. Just my personal views.. not in favour or against any of the companies mentioned above..🙏

No doubt they have some very good Brands but i feel Mamaearth or other Retail companies like them are still banking on conventional Tech Heads /big advisory companies and somehow are not in position to compete Q-commerce and if they go with them then shelf holding Cost is killing their margins , I believe they have big pottential but need to change thier mindset of integrating B2B/3PL and their Brand promotion along with last mile delivery strategies ...

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