Mamaearth, formally announced that it has raised more than $37.5 million in a round led by Sequoia at a valuation of $1.2 billion. In a statement, the company claims that it has raised $52 million in this round.
The company became the 43rd startup to join the unicorn club in 2021 and is one of the few unicorns to have a female co-founder. Mamaearth has employed a house-of-brands strategy through which it wants to go deeper into the direct-to-consumer beauty and personal care segment.
The company plans to deploy the funding towards expanding its portfolio of personal care D2C brands venturing into new avenues with unique propositions, and towards product innovation, distribution, and marketing of brands in Honasa’s stable.
Besides launching new brands, Honasa will aggressively pursue to expand the distribution for existing brands — Mamaearth and The Derma Co. — and explore strategic inorganic growth opportunities in the beauty and personal care segment.
Mamaearth success is backed by exponential millennial connect
Varun Alagh, Co-founder and CEO, Honasa Consumer Pvt. Ltd., said, “Looking at the scale of Mamaearth and 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, and GCC respectively, which will help us grow internationally and learn from others in these markets.”
The round witnessed participation from Sofina Ventures SA, the Belgium-based investment company, and Evolvence, a UAE based India focused fund. It also gave employees an opportunity to monetize their vested ESOP.
