D2C unicorn on its way to IPO, Mamaearth, will terminate Momspresso. According to media reports, Momspresso’s influencer engagement platform, MyMoney, may close later this month due to the latter’s mounting deficits.
In 2021, Mamaearth paid Rs 152.3 crore for the parenting platform Momspresso. Momspresso now has three business units: user generated content (blogs), brand promotion, and MyMoney.
Momspresso’s top management, including the co-founders, told employees about the decision to close MyMoney during a town hall meeting in the first week of April.
MyMoney has been witnessing a drop in sales since its acquisition by Mamaearth, reports added.
According to various reports, the D2C beauty startup is also planning to close Momspresso’s brand marketing division.
According to the sources, Momspresso recently lay off between 80 and 100 people across both verticals. Employees in tech, content, customer service, marketing, and product roles were heavily impacted by this transition. Mamaearth decided to close the loss-making verticals due to its forthcoming initial public offering (IPO).
Momspresso’s MyMoney app is no longer available on Google Play, and the iOS app has numerous bugs. Furthermore, it has already conducted a cost-cutting restructuring exercise in December 2022.