What exactly propelled Mamaearth and Honasa towards the major milestone of a full year of profitability? Many have celebrated Zomato’s rise to profitability, and how it has managed to stay there over the course of four quarters. But the same credit is due to Mamaearth and Honasa. After reporting profits in the last three quarters, the company ended FY24 with profits of INR 110.
52 Cr, a big turnaround from the INR 150.96 Cr loss of FY23. So what exactly propelled Mamaearth and Honasa towards this major milestone? And has Honasa cracked the house of brands model to finally realise the promise of this model? That’s what we will look at but after these top stories from our newsroom this week: Honasa started out in 2016 with Mamaearth and an eye on making the most of the direct-to-consumer ecommerce wave that was about to kick off.
For the first four years, it was largely an online-only brand, till the Covid-19 pandemic when it began looking at retail outlets as a way to be closer to consumers. While ecommerce boomed and flourished after the initial days of the lockdown, Mamaearth focussed heavily on the omnichannel model expanding to 10K stores by the second half of 2020 and with an eye on long-term brand building. In fact, this helped Mamaearth establish itself as a new-age alternative to traditional FMCG brands in the beauty, skincare and personal care segments.
In fact, in FY24, the company made nearly 35% of its revenue from offline sales, and a bulk of this has come from.
