Honasa Consumer, the parent company of Mamaearth brand, has raised USD 52 million in the latest funding round led by Sequoia Global on 1 January 2022. With a valuation of USD 1.15 billion, the company has joined the unicorn club.
Investors: Sequoia Global led the latest funding round with participation from Sofina Ventures SA, the Belgium-based investment company, and a UAE based India focused fund, Evolvence. In addition, this round allowed employees to monetize their vested ESOP. Some early investors like Fireside Ventures and Stellaris also got a partial exit in this round.
The Objectives behind the funding: The company plans to deploy the current proceeds to expand its portfolio of personal care D2C brands, venture into new avenues with unique propositions. In addition, the funds will be directed towards product distribution, innovation, and marketing of brands in Honasa’s stable. In addition to launching new brands, Honasa will continue aggressively expanding distribution for existing brands -The Derma Co. and Mamaearth and explore strategic inorganic growth opportunities in the beauty and personal care segment.
Founded in 2016 by Varun Alagh and Ghazal Alagh, Mamaearth is a personal care brand that specializes in baby and toddler products. It develops products from world-class research and attempts to solve every little problem the parents face. Apart from being safe as certified by external agency MadeSafe, its products are also enriched with the goodness of natural ingredients like Shea butter, Calendula Extract, Jojoba Oil, to name a few. Mamaearth plans to provide safe, natural solutions to problems ranging from morning sickness to baby colic in the future.
What the Founders have to say:
Commenting on this, Varun Alagh, Co-Founder and CEO, Honasa Consumer Pvt. Ltd., said, “Our flagship brand, Mamaearth has established itself as a leader in D2C personal care with a strong purpose of Goodness Inside. Looking at the scale of Mamaearth and the success of The Derma Co., we are confident that we have the expertise to build brands with a millennial connect. We will be deploying the funds towards brand launches, expanding distribution, inorganic growth and expanding the current portfolio across borders. Sequoia, Sofina and Evolvence have unique strengths in US, Europe & GCC respectively which will help us grow internationally & learn from others in these markets.”
Commenting on the investment, Ghazal Alagh, Co-Founder and CIO, Honasa Consumer Pvt. Ltd., said, ” With the launch of Aqualogica, we are the first ones to launch a brand on the Nobel prize-winning Aquaporins based approach to hydration, and the brand is already showing great receptivity by the consumers. The recent round will empower us to fuel our innovation funnel and provide a wider assortment of problem-solving personal care products for millennials we closed will further provide impetus to our innovation funnel and help us serve our consumers with a wider assortment of products.”
What the Investors have to say:
Ishaan Mittal, MD, Sequoia India, said, “As discovery and consumption of FMCG brands is getting more influenced by digital channels, it is providing a unique opportunity to founders to build brands of the future. Mamaearth has established itself as a clear market leader in this digital-first consumer goods space, and team Sequoia is delighted to double-down on the partnership with Ghazal and Varun in this journey.”
Rohit Batra, Managing Partner, Evolvence Capital, said, “We have been very impressed with the remarkable growth that Honasa has witnessed and the deep connect and trust it has established with its customers. We believe the GCC market will be very receptive to the Honasa brands, especially Mamaearth, and initial signs have been very encouraging as we scale in the region.”
Yana Kachurina, Investment Manager, Sofina Ventures SA, said, “We have been privileged to witness the spectacular growth of the company over the last few months, which only reinforces our initial view that Honasa is led by exceptional entrepreneurs and boasts best-in-class brand building and innovation capabilities.”
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