Skincare brand The Derma Co, from the house of Honasa Consumer, has crossed Rs 30 crore monthly revenue in 41 months since inception, with its annual recurring rate (ARR) crossing over Rs 350 crore. The firm said it has outpaced the flagship brand Mamaearth in the feat.

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With products tested by dermatologists, The Derma Co which was founded in 2020, provides solutions for skin and hair conditions crafted using active ingredients, targeted to heal diverse concerns like active acne, acne marks, pigmentation, dull skin, ageing, hair loss, dandruff, and more. The brand sells through digital and retail touchpoints and, also retails across leading e-commerce marketplaces and select modern trade partner outlets.

“We crafted The Derma Co with clinically tested products in safe formulations using active ingredients to help consumers solve skin concerns. Being the second brand from our house, we deployed the playbooks that were created from our learnings from Mamaearth’s journey,” said Varun Alagh, Co-Founder, Chairman & CEO, Honasa Consumer.

In August, Aqualogica, a hydration-based skin care brand from the house of Honasa Consumer, had crossed Rs 12.5 crore monthly revenue in 18 months, with its annual recurring rate (ARR) touching Rs 150 crore.

Founded in 2016, Mamaearth started as a D2C baby care products brand. Gradually, it forayed into the beauty and personal care segment. It currently sells products ranging from makeup and hair care to body care. Honasa also owns in-house brands including Aqualogica and The Derma Co, as well as Dr Sheth and BBlunt through acquisitions. Mamaearth acquired parenting platform Momspresso in 2021. Amid a bid to improve profitability, it shut the Momspresso MyMoney platform due to its increasing losses.

“Through the incubation and scale up phase, we realised that we have established repeatable playbooks that helped us reach milestones faster than Mamaearth. This milestone achieved by The Derma Co. has reinforced our belief in our playbooks and we will continue to deploy our learnings across the portfolio brands of Honasa Consumer”, said Varun Alagh added.

Mamaearth is getting ready to launch its IPO. Sources told CNBC-TV18 that the company may hit Dalal Street as early as November if all goes to plan with its roadshows. The firm has already held roadshows in Mumbai and is currently meeting investors in Singapore and Hong Kong. Mamaearth’ s parent Honasa Consumer set out on its IPO journey in 2022, the omnichannel retailer got SEBI’s nod to list in July.

The D2C unicorn is eyeing a valuation between $1.4 to 1.6 billion, sources added. According to its DRHP Honasa’s proposed IPO comprises a fresh issue of equity shares worth up to Rs 400 crore and an offer for sale (OFS) for 46.82 million shares by promoters and existing shareholders.

Mamaearth was valued at $1.2 billion when it raised $52 million in January last year in a round led by Peak XV Partners. It turned profitable in FY22 with a standalone net profit of Rs 19.8 crore as against a net loss of Rs 1,332.2 crore in the previous year. The company is soon expected to submit its FY23-24 financials for the planned listing by mid-October, as per sources.

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(Edited by : Sangam Singh)

First Published:Sept 20, 2023 2:55 PM IST