Everyone has a lot to say about the Mama Earth IPO. Some are calling it a scam. Some are Thrashing the valuations.
Even others are attacking the product-saying there's nothing special But what is the truth?
After going through a 460-page document called a "DRHP"- which basically gives you an inside look into the company-
we realized that everything you may know about MamaEarth is WRONG
Here's something from the DRHP: "We outsource the manufacturing of all our products to third-party manufacturers."
Meaning MamaEarth doesnt manufacture anything in-house. They dont even have a manufacturing facility
So if MamaEarth is not a manufacturer - what does the company actually do?
Selling. That's it. MamaEarth is a marketing powerhouse.
It also acquired an entire content platform called "momspresso" for a massive 153 crores last year
And between March and September 2022, the company worked with a whopping 3958 influencers!
In fact. this is one of the biggest criticisms of MamaEarth.
That they spend so much money on advertising, influencers and other marketing activities that the financials will never make sense.
# 3 MAMAEARTH DOES NOT HAVE A PATENT
MamaEarth's products are toxin-free and built with care - so you may have naturally assumed they were the ones making it. Right?
That they have unique formulations that nobody can copy.
But.MamaEarth has zero patents to its name.
n fact, they havent even made an application to get a patent.
So if somebody wanted to copy their products they could and MamaEarth wouldn't be able to do anything!