Indian skincare startup Mamaearth eyes $3.0b valuation in 2023 IPO

MUMBAI, June 21 (Reuters): Sequoia Capital-backed Indian skincare startup Mamaearth is in talks to raise at least $300 million in a planned IPO next year and is seeking a valuation of around $3 billion, three people with direct knowledge of the company's plans told Reuters
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 (HLL.NS), and Procter & Gamble Co (PG.N) in the booming personal care industry.
The company was last valued at $1.2 billion in January this year when it raised fresh funds from investors including Sequoia and Belgium's Sofina.
Mamaearth is targetting a valuation of around $3 billion - 10-12 times forward earnings based on sales growth and future revenue potential, a person briefed on the discussions said. It plans to file draft regulatory papers by the end of this year, said sources, who declined to be named as the plan is private.
Two of those sources said Mamaearth is in early-stage discussions to raise at least $300 million in its IPO, with a third source pegging the number at $350 million.
A Mamaearth spokesperson declined to comment on its IPO plans. The company's target valuation for the IPO, and the funds it plans to raise, have not been previously reported.
The company is in talks with JP Morgan Chase, India's JM Financial and Kotak Mahindra Capital to appoint them as bookrunners to the deal, the sources added
JP Morgan Chase declined to comment. JM Financial and Kotak did not immediately respond to requests for comment.
Mamaearth's IPO plans come during a broader rout in capital markets and a slowdown in India's booming startup ecosystem that recorded a stellar $35 billion in record fundraising last year.