The newly infused capital will be utilised in product innovation, distribution, and marketing. In addition to launching new brands, Honasa will continue aggressively expanding distribution for Mamaearth and The Derma Co.
January 18, 2022
Honasa Consumer Pvt Ltd (HCPL), the parent company of Mamaearth, The Derma Co., and the fastest-growing personal care House of Brands, has closed the latest USD 52 million round led by Sequoia, accelerating the company’s leadership in the D2C personal care segment.
The round witnessed participation by Sofina Ventures SA, the Belgium-based investment company, and Evolvence, a UAE-based India-focused fund. The round also gave employees an opportunity to monetize their vested ESOP.
Commenting on this, Varun Alagh, Co-Founder and CEO, Honasa Consumer Pvt. Ltd. said, “We have been on a constant quest to become a company that is the first choice of evolving Indian millennials in the beauty and personal care segment. 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.”
Commenting on the investment, Ghazal Alagh, Co-Founder and CIO, Honasa Consumer Pvt. Ltd. said, “Our company is built on the proposition of Honest, Natural and Safe and that has contributed to the exponential growth of Mamaearth as consumers buy into the philosophy of the brand while purchasing the product. Millennials personal care concerns are dynamic and with our Direct-to-Consumer approach, we are updated on the changing consumer demands. With this thought, we have been able to build an extensive portfolio of products across baby care, skincare, haircare, and color cosmetics under Mamaearth and a portfolio of 40+ products under The Derma Co.”
The newly acquired funds will be directed towards product innovation, distribution, and marketing of brands in Honasa’s stable. Along with launching new brands, Honasa will continue aggressively expanding distribution for existing brands – Mamaearth and The Derma Co.
She further added, “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.”
With the latest investment, the post-money valuation of the brand has surged to USD 1.07 billion thus making it a new entrant to the coveted unicorn club. The company has become the 43rd startup to join the unicorn club in 2021 and is one of the few unicorns to have a female co-founder.
Ishaan Mittal, MD, Sequoia India said, “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.”