Online baby care brand Mamaearth has raised ₹130 crore (about $18.14 million) in a round led by Sequoia Capital India, the company said on Wednesday. Existing investors Fireside Ventures, Stellaris Venture Partners and Sharp Ventures also participated in the round.
Honasa is the parent company of personal care brand Mamaearth. The company said funds will be used to continue its growth — building it into a Rs 500 crore brand by acquiring five million new consumers in the next three years. It will also be utilised to launch more brands under the Honasa umbrella — all of which will be focused on the needs of the new-age, millennial consumers. The startup also plans to expand into key markets in Southeast Asia, where the presence of a similar millennial audience lends it strong market potential.
Founded in 2016 by husband-wife duo Varun and Ghazal Alagh, MamaEarth claims to be Asia’s first made-safe certified brand that offers completely toxin-free skincare, hair care, and baby care products.
Mamaearth also claims to be one of the fastest Indian startups to notch up an annual revenue run rate of ₹100 crore.
Commenting on the investment, Varun Alagh, Founder and CEO, Mamaearth, says, “We have a long way to go at Honasa (Mamaearth’s parent company). Our vision is to create the FMCG conglomerate of the future by building brands that connect strongly with millennials and Gen Z customers using the combined power of digital marketing and ecommerce at large scale. Sequoia India’s investment at this stage of our journey validates this vision of building a global brand of the future.”
Ishaan Mittal, Principal, Sequoia Capital India, says, “Out of India’s $15B+ personal care market, online channels contribute to only 3-5 percent. With 15-20 percent of Indian shoppers influenced digitally and expected to double in next 7-8 years, digital first brands have the potential to redefine the architecture of tomorrow’s FMCG companies. Varun’s vision is to ride these market tailwinds to create a multi-brand, cross geo FMCG company over the next decade. The team at Sequoia India is excited about being partners in this phenomenal journey.”
Mamaearth, with a Rs 100 crore run-rate, has over 80 products in its portfolio with more than 1.5 million consumers in over 500 cities across India.
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