Mamaearth’s parent raises $ 52 million in funding led by Sequoia Global
The cycle also saw the participation of some existing investors such as Belgian Sofina Ventures SA and new funds such as UAE-based Evolvence, said Varun Alagh, co-founder and CEO of Honasa Consumer.
Some of the early investors like Fireside Ventures and Stellaris have partially emerged from this cycle. There was also a repurchase of shares of some of its employees. Other existing investors include Sequoia Capital, Sharrp Ventures, and Titan Capital.
“Seqouia Global, Sofina and Evolvence have unique strengths in the US, Europe and the GCC, respectively, which will help us grow internationally and learn from others in these markets,†said Alagh.
The company, which aims to reach $ 1 billion in revenue over the next five years, will deploy the funds to expand its portfolio of D2C personal care brands. Honasa Consumer has three brands – Mamaearth, The Derma Co and Aqualogica, launched a few weeks ago, and will introduce more brands in the coming months.
Along with the launch of new brands, Honasa will continue to aggressively expand the distribution of existing brands -Mamaearth and The Derma Co. and explore opportunities for strategic inorganic growth in the beauty and personal care segment.
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“We will also strengthen our technological capabilities, as our tech and data-driven mindset is the main differentiator from the big incumbent brands,†Alagh added.
Founded by Alagh and his wife Ghazal Alagh in 2016, the company that makes toxin-free products also opened seven physical stores this year. It plans to expand outlets to the top 20 cities with the highest sales. Alagh said Mamaearth’s own online platform is its largest total sales channel, without giving specific numbers. The products are also available in online marketplaces like Amazon, Flipkart, and Nykaa. It currently serves over 1000 cities in India.
The D2C brands have gained traction over the past year with several new-age brands such as boAt in electronics, Sugar Cosmetics in makeup and Bombay Shaving Company (BSC) in men’s grooming. The growth of D2C brands is largely driven by multiple factors such as increased consumer awareness and willingness to try new brands.