Mamaearth Business Model: A Solution For Babies And Mothers


Mamaearth business model: The company Mamaearth was started when the couple from Gurgaon Varun Alagh and Gazal Alagh realized that their newborn son’s skin was allergic to a lot of substances and it turns red and itchy when exposed to them. They decided to hunt for chemical-free baby care products in the market.

Both husband and wife became aware that their relatives are also facing the same difficulties. This became a great business opportunity for them. In the year 2016, the couple decided to launch a brand named Mamaearth under the parent company Honasa Consumer PVT LTD which deals with toxin-free baby care products for newborns and pregnant mothers.

At first, they launched products like baby lotion and mosquito repellant. In addition, The couple invested around Rs 50 lakhs at the initial stages from their saving and funds from a few investors.

Mamaearth Business Model

Here are some points that shows Business Model of the company

  1. Mamaearth is the first Asian brand with Made-safe certifications.
  2. The products of the company are chemical-free. With the company’s innovative product line, it has tried to solve the Indian parenting problem with its headquarters in Gurgaon India.
  3. Now Mamaearth has a catalogue of around 80 natural products in categories like Baby care, skincare, haircare, etc. It is one of the fastest-growing brands in India that crossed the 100 crore mark in just 4 years. More than 1.5 million customers in more than 600 cities across India are using Mamaearth products.
  4. Mamaearth is a digital FMCG company that targets customers digitally moreover, the brand is also registered on Amazon launchpad, Flipkart, Paytm Mall, First cry, etc. It is planning to expand on other platforms as well.
  5. The lean Innovation cycle has helped Mamaearth in its current growth. The company’s product range starts from Rs 99 and it goes up to Rs 1700.

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Finance and Funding’s

  1. The company has raised a total of $23.3 Million in 5 rounds.
  2. In 2016 it raised a round of $1,25,000 from a consortium of investors.
  3. The company raised $4 Million from Stellaris Ventures, Fireside Ventures, Sharp Ventures, and Founders of Snapdeal.
  4. In 2018 Shilpa Shetty also joined Mamaearth as a brand ambassador and also invested Rs 1.6 crore for its uniqueness.