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Business News/ Industry / My best investment was in Shark Tank Judge Ghazal Alagh’s Mamaearth: Shilpa Shetty Kundra
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My best investment was in Shark Tank Judge Ghazal Alagh’s Mamaearth: Shilpa Shetty Kundra

Not just a numbers game, Bollywood actor and Entrepreneur Shilpa Shetty Kundra said at the Mint India Investment Summit 2024 that investing in startups is more of an instinctive thing for her.

Shilpa Shetty Kundra, who has a number of companies in her investment portfolio, counts Mamaearth as her most successful investment bet yet.Premium
Shilpa Shetty Kundra, who has a number of companies in her investment portfolio, counts Mamaearth as her most successful investment bet yet.

The proudest money decision I’ve made was to invest in Mamaearth, said Bollywood actor and Entrepreneur Shilpa Shetty Kundra at the Mint India Investment Summit 2024, on Friday.

Kundra, who has a number of companies in her investment portfolio, like agritech startup Kisankonnect, and 100Percent Nourishment, a Mumbai-based firm selling healthy food products under the brand WickedGud, along with her own health and fitness app Simple Soulful, counts Mamaearth as her most successful investment bet yet.

“When I invested in it, it was worth barely 35 crores," Kundra said at a fireside chat titled ‘Scaling startups through brand ambassadors’. "I didn’t know I’d make so much money."

The Bollywood actor, who also serves as a brand ambassador for Mamaearth, had invested 6.7 crore in Honasa Consumer Ltd, Mamaearth’s parent company in 2018, to acquire 16 lakh shares. When the company went public in 2023, Kundra offloaded 13.93 lakh shares for a total of 45.13 crore.

She had bought the shares at 41.86 each, as per the company’s red herring prospectus, and the price band had been set at 308-324 for the IPO, implying a return of 674 times on her initial investment of 5.83 crore for the 13.93 lakh shares she had offered to sell in the IPO.

She continues to hold 2.3 lakh shares in the beauty and personal care brand after the IPO. Shares of Honasa were trading at 402 per share with a market cap of 13,000 crore as per Thursday’s market close.

On being quizzed about what drove her to invest in startups at a time when her peers in the Bollywood were mostly known for investing in traditional assets like real estate, she said that celebrities are increasingly investing their money in brands they endorse and not just taking sweat equity. “They've got skin in the game because they know that the return will get them much better benefits in a shorter time."

According to her, today’s consumers are smart and know when a celebrity is invested in a business or a product, and when are they just leveraging their name.

“When you show me solution to a problem, you get my attention and investment," is how Kundra explains her investment mantra.

The Bollywood diva said that the decision to invest in a company is not just a numbers game for her, but also an instinctive one. “When I got back to Varun and Ghazal, and said I would endorse their product, they said they can’t afford my price. But then we figured out another way to go about the whole deal."

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Published: 30 Mar 2024, 12:45 PM IST
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