Mamaearth parent raises $37 mn at unicorn valuation from Sequoia affiliate
1 min read . Updated: 29 Dec 2021, 03:40 PM IST
Premium- The company had raised $50 million in July from European investment firm Sofina Ventures SA and Sequoia Capital, which had then valued the personal care products company at $730 million
Honasa Consumer Pvt Ltd, the parent company of personal care brand Mamaearth and The Derma Co, has raised a little over $37 million as part of its Series F funding round, making it the 45th unicorn, or a startup with over $1 billion valuation, in 2021 in India.
The fundraise values Honasa Consumer at $1.07 billion according to VCCircle estimates, based on filings made with the Registrar of Companies.
The funding was led by Sequoia Capital’s Sequoia Capital Growth Fund III, according to regulatory filings. As part of the transaction, the company has issued 839 compulsorily convertible preference shares (CCPS), having a face value of ₹10 each at a total issue price of ₹33,85,049 each for consideration in cash.
The fresh capital has been raised for business expansion, and to fund operations, according to the regulatory filings. News website Entrackr first reported the development, saying the funding was raised at a valuation of over $1.07 billion. Honasa Consumer denied to comment on the story.
The company had raised $50 million in July from European investment firm Sofina Ventures SA and Sequoia Capital, which had then valued the personal care products company at $730 million.
The company had then said it would use the funds to drive brand growth through aggressively expanding its offline distribution and explore inorganic growth opportunities in beauty and personal care.
Honasa Consumer had added that the company would give some early employees an opportunity to monetise their vested ESOP. Since then, the company has acquired content platform Momspresso and Momspresso’s influencer engagement platform MyMoney. The company also announced an ESOP worth ₹20 crore for all employees recently.
The company currently has a portfolio of around 140 products under Mamaearth, and over 40 products under The Derma Co. It had also said that it has a vision of becoming a 'house of brands’. The ‘house of brands’ strategy, also referred to as the so-called Thrasio model, is getting popular with new-age brands acquiring companies aggressively in a bid to expand their product offerings.
VCCircle recently reported that The Good Glam Group, the parent of MyGlamm, is in talks to invest in a male grooming brand, Ustraa. The Good Glamm Group recently announced investing ₹100 crore in Sirona, a startup that deals with feminine hygiene products, and had acquired Miss Malini Entertainment, a celebrity media and influencer talent management network, for an undisclosed amount.
