Honasa Consumer Pvt Ltd (HCPL), which runs personal care brand Mamaearth, on Monday said it has raised USD 50 million (372.4 crores) in funding led by Sofina Ventures SA. The round also witnessed participation from existing investor, Sequoia Capital India, a statement said. HCPL had previously raised USD 23 million in funding, and the latest infusion has pushed the company's valuation to USD 730 million.
Along with primary infusion by Belgian-based investment company Sofina Ventures SA, the latest round also saw the secondary sale by early investors like Fireside Ventures, Stellaris Venture Partners, Sharp Ventures, and Titan Capital. However, the company did not disclose additional details of the secondary sale. Honasa said the round also gave some early employees an opportunity to monetize their vested ESOP.
'The company plans to deploy the funds to drive brand growth through aggressively expanding their offline distribution and explore inorganic growth opportunities in beauty and personal care,' the statement said. Varun Alagh, co-founder and CEO of HCPL, said the company - with a vision of becoming a house of brands - is currently focusing on creating brands with millennial propositions with an internet-first approach.
'This round will help amplify the process and strengthen the D2C and offline expansion of Mamaearth, along with further accelerating the growth of The Derma Co which is already showing early signs of success, since its launch in 2020,' he added. The company will also be exploring inorganic growth opportunities in the beauty and personal care segment, he noted.
'We have been able to create a portfolio of over 140 products under Mamaearth and more than 40 products under The Derma Co. To achieve this, we have built a diverse team of millennials who constantly endeavour to further our purpose,' Ghazal Alagh, co-Founder and CIO of HCPL, said. The funding will further provide impetus to the innovation funnel and help serve consumers with a wider assortment of products, she added.
Earlier this year, HCPL had said strong demand from across metros and tier I and II cities has helped Mamaearth crossed an annualised revenue run rate of Rs 500 crore and that the brand was looking at doubling that in the near future.