Honasa Consumer Pvt Ltd (HCPL), the parent firm that owns Mamaearth and The Derma Co., has raised $50 million from Sofina Ventures SA and Sequoia Capital India.
WHO: Mamaearth was founded in 2016 by husband-and-wife duo Varun and Ghazal Alagh as Asia's first made-safe certified brand. It offers free and natural skincare, haircare, and baby care products for the Indian market. Mamaearth products are sold on major e-commerce platforms such as Amazon, Nykaa, and Flipkart, as well as over 2,000 multi-brand stores across 40 cities in the country.
Derma Co. is a skincare brand from Mamaearth's parent company Honasa Consumer that consists of around 40 products to target millennial consumers.
WHY: The brand will use the funds to drive brand growth through aggressively expanding its offline distribution and explore inorganic growth opportunities in beauty and personal care. The business also plans to acquire brands and scale them both online and offline.
IN THEIR OWN WORDS: "With a vision to become a house of brands, the company is currently focusing on creating brands with millennial propositions with an internet-first approach. This round will help amplify the process and strengthen the D2C and offline expansion of Mamaearth, along with further accelerating the growth of The Derma Co. which is already showing early signs of success, since its launch in 2020, " Varun Alagh, co-founder and CEO, Mamaearth, said.
"The Mamaearth team is constantly pushing the boundaries in the personal care space through their disruptive innovations, rapid execution pace, and focus on delighting customers," Yana Kachurina, Investment Manager, Sofina Ventures SA, said.
- Mamaearth raised a $50 million round of funding, led by a $27 million investment from Sofina Ventures AS with participation from Sequoia Capital India and others. This round values the business at $730 million.
- The round also saw secondary sales by early investors like Fireside Ventures, Stellaris Venture Partners, Sharp Ventures, and Titan Capital, and also gave some early employees an opportunity to monetize their vested ESOP.
- In January 2020, Mamaearth's parent company Honasa raised $18 million in a Series B led by Sequoia India with participation by existing investors Fireside Ventures, Stellaris Venture Partners, and Sharp Ventures.
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