Mamaearth, Poised for IPO, to Discontinue MyMoney and Brand Marketing Division of Momspresso
Company to make the strategic move of shutting down its unprofitable divisions
14 June 2023
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Jayashri Ghorpade
In April of this year, the top officials of Momspresso made the announcement to close down MyMoney. Additionally, there are indications that Mamaearth is considering the closure of Momspresso's brand marketing vertical.
In a recent development, Mamaearth made the decision to lay off a number of employees from the brand marketing vertical, resulting in job losses for approximately 80-100 individuals across both verticals.
Sources indicate that Mamaearth has made the decision to close down its loss-making verticals, specifically Momspresso, due to its upcoming IPO. The rationale behind this move is that the company does not wish to allocate further funds to the unprofitable venture as it prepares for its initial public offering.
Sources have revealed that Mamaearth, a direct-to-consumer (D2C) unicorn preparing for an initial public offering (IPO), is set to close down Momspresso MyMoney, an influencer engagement platform associated with Momspresso. The decision is primarily attributed to the mounting losses incurred by Momspresso. Mamaearth had acquired Momspresso, a parenting platform, in 2021 for INR 152.3 Crores. Currently, Momspresso operates three verticals which include a user-generated content platform (blogging platform), brand marketing, and MyMoney.
During a town hall meeting in the first week of April, the top management of Momspresso, including the co-founders, informed the employees about the impending closure of MyMoney. Sources indicate that MyMoney has experienced a decline in sales ever since its acquisition by Mamaearth, contributing to this decision.
According to multiple sources, it is likely that the D2C beauty unicorn will close down Momspresso's brand marketing business. These sources have also revealed that Momspresso has recently undertaken a significant workforce reduction, resulting in the termination of 80-100 employees across various departments such as tech, content, customer service, marketing, and product roles. This move has had a significant impact on the affected employees within the organization.
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Despite multiple attempts to seek comments on the recent developments, emails sent to Vishal Gupta, the co-founder of Mamaearth and Momspresso, have remained unanswered as of the time of publishing this story.
Furthermore, it has come to light that Momspresso's MyMoney app is no longer accessible on Google PlayStore, and the iOS app is experiencing issues and glitches.
Additionally, Momspresso had previously undergone a restructuring process in December 2022 with the objective of reducing costs.
According to the sources mentioned earlier, Gupta and Prashant Sinha, both co-founders of Momspresso, have launched a new marketing agency and have successfully recruited approximately twelve employees who were previously laid off by Momspresso. The operations of this marketing agency commenced just last week.
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