Honasa Consumer Pvt Ltd (HCPL), which runs personal care brand Mamaearth is looking at expanding its headcount by 200 people across various roles this year as it sees significant growth momentum in its business from both online and offline channels, a top company executive said.
Strong demand from across metros and tier I and II cities has helped Mamaearth crossed an annualized revenue run rate of Rs 500 crore and the brand is now looking at doubling that in the near future.
Honasa Consumer Co-founder and CEO Varun Alagh told PTI, “So we right now, we are about 300 people and by the end of this year, we’ll be at about 500 people. Of these, 100 people will be a part of the offline retail team and the others will be spread over other functions – growth team, D2C team, customer service, marketing team and others.”
He added that Mamaearth is now a Rs 500 crore-run rate brand, making it one of the fastest-growing personal care brands to reach the milestone in less than four years of existence.
“Our next ambitious milestone would be Rs 1,000 crore but let us see when we are able to hit that. The growth last year was 400 percent-plus…Rs 1,000 crore is our next milestone,” he said.
HCPL is backed by investors including Sequoia Capital India, Fireside Ventures, Stellaris Venture Partners, and Sharrp Ventures. Talking about the road ahead, Alagh said there are three things that the company will focus on – expanding offline presence, continuing to bring in innovative products, and leveraging the experience from Mamaearth to launch more brands to cater to various customer needs.
The development comes as the firm believes that a lot of consumers still prefer transacting in the offline space apart from its D2C and e-commerce channels; hence its focus on extending its presence in offline and be present in at least the top 100 smart cities of India, with multiple brands servicing millennials. With the company seeing the contribution of tier II and beyond cities increasing significantly last year, it will focus on those 3,000-4,000 pin codes which have really high contribution to the business. The firm’s D2C platform already services about 11,000 pin codes across India. Offline sales account for about 20 percent to the revenue and this is expected to scale up to 35 percent by the end of the year.