Mother Sparsh is raising INR 20 crore in Series A funding from ITC and it plans to use the capital in enhancing its R&D capabilities, digital capabilities, driving new product launches, and the expansion of the team.
December 24, 2021
FMCG major ITC Limited is going to invest in Mother Sparsh Baby Care Pvt. Ltd., a D2C Ayurvedic personal care brand offering mother, kids, and baby care products. It has a wide assortment of products that are based on the knowledge of Ayurveda. ITC has agreed to acquire 16 percent of the share capital of Mother Sparsh on a fully diluted basis.
Mother Sparsh has informed that it is raising INR 20 crore in Series A funding from ITC. The company is seeking to deploy the raised capital towards enhancement of its R&D capabilities, digital capabilities, driving new product launches and expanding the team.
Himanshu Gandhi, Co-founder, and CEO, Mother Sparsh, said, “We are elated to be associated with a partner like ITC whose ethos compliments our brand vision. ITC is in sync with what we envisioned as the future of Mother Sparsh. We expect to scale up our revenues to Rs 300 crore over the next three to five years.”
According to Rishu Gandhi, Co-founder, Mother Sparsh said that the decision of ITC to invest in the company was propelled by the wide portfolio and mix of products, which enabled Mother Sparsh to grow from strength to strength each year.
Started in 2016, Mother Sparsh, known for its natural baby skincare range, had registered a turnover of INR 15.44 crore in FY 2020-21.
“It assumes significance in wake of a multi-fold increase in the website sales clocked by the brand over the past few months,” said Rishu Gandhi. “The company at present registers over 85 percent of its sales through online channels and has over the past 12 months diversified its product portfolio by over 25 percent.”
Sameer Satpathy, Chief Executive, Personal Care products business, ITC, commented, “We believe that this investment provides an exciting opportunity which is in alignment with our aspiration to have a significant play both in the naturals and ayurvedic segment as well as in the D2C channel. Mother Sparsh has, within a short span of time, evolved into an effective D2C brand with a range of innovative products and a lot of promise.”