Peak XV finds 10x return in oversubscribed IPO of Mamaearth: Report

New Delhi : Peak XV Partners (earlier Sequoia Capital India and Southeast Asia) has reportedly found 10 times or greater return in the oversubscribed initial public offering (IPO) of Mamaearth, the direct-to-consumer (D2C) skincare brand.

In Mamaearth, Peak XV Partners has found another 10 times or greater return within the six months since separating from Sequoia, reports TechCrunch. Mamaearth's IPO, managed by Honasa Consumer, reached full subscription on the third day following a slow commencement.

The company's shares are scheduled for listing on both the BSE and National Stock Exchange (NSE) on November 10. Meanwhile, Mamaearth posted a Rs 151 crore loss in FY23. Honasa Consumer Pvt Ltd is expected to raise Rs 10,500 crore in the IPO, according to reports.

Peak XV has also offloaded its remaining shares in Zomato, "capping a 10x-plus return journey with the food delivery startup that began a decade ago," the report mentioned. According to the report, Peak XV also made a 12x-plus return on edtech startup K12 Techno Services it originally backed about a decade ago. Peak XV did not comment on the report.

"The returns are a boost to the firm, which with a capital pool of $2.5 billion oversees a substantially larger capital volume than any other venture capital firm focused on India and Southeast Asia," the report mentioned. The fund has made over 400 investments and its portfolio includes more than 50 unicorns.