BackMamaearth parent makes it to Hurun's best PE-backed firms’ list
Founded in 2016, Mamaearth has become popular in India with its range of 'toxin-free' products such as face washes, shampoos and hair oils
PremiumSkincare brand Mamearth's parent company Honasa Consumer has topped Hurun's list of best-performing entities backed by private equity funds in FY2020-21.
The Practus Hurun India PE Performers List focuses on entities based on cash flows, profitability, and revenues.
The Sequoia Capital India and Sofina Ventures-backed Honasa has delivered a 491% growth in the weighted average performance growth, as per the list.
The second spot is bagged by Encube Ethicals (343% growth) and Ecom Express (283% growth).
However, the report did not offer details on cash burn at such enterprises or direct co-relations between valuations and performances.
It enlisted the top investing professionals based on the bets that they have steered. Ravishankar G V of Sequoia tops the list with total investments of $125 million in companies like Zetwerk, Five Star Business and Honasa, followed by Niren Shah of Norwest Venture Partners.
Practus' chief executive and founder Deepak Narayanan said it is important to assess what happens to a company beyond funding rounds and valuations, pointing out that there was a 96% increase in PE investments at $70 billion in 2021.
Founded in 2016, Mamaearth has become popular in India with its range of "toxin-free" products such as face washes, shampoos and hair oils. It competes with Unilever's India unit, Hindustan Unilever, and Procter & Gamble Co in the booming personal care industry.
Mamaearth was co-founded by Varun Alagh, a former Hindustan Unilever executive, and his wife Ghazal. The company has cashed in on growing e-commerce adoption in India by offering its products on platforms such as Amazon and Walmart's Flipkart.
India's beauty and personal care industry is expected to grow to $27.5 billion by 2025, from $17.8 billion in 2020, Indian financial services firm Avendus estimates. The number of online shoppers for beauty products is also projected to rise to 135 million from 25 million during that period.
Mamaearth recorded a post-tax profit of 246 million Indian rupees ($3.15 million) for the year ended March 2021.
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