Honasa Consumer Pvt. Ltd. (HCPL), which runs Mamaearth, The Derma Co., on Saturday said it has raised $52 million in the latest round of funding led by Sequoia to enter the coveted unicorn club. Other investors including Sofina Ventures SA and Evolvence also participated in the funding round. The round provided an option for monetisation of employee stock ownership plans (ESOPs), the company said in a statement. “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,” Varun Alagh, co-founder and CEO, Honasa Consumer Pvt. Ltd., said.
The company will utilise the fresh capital for expansion of its portfolio of personal care D2C brands, while it recently launched Aqualogica, a hydration-based skincare brand to foray into a new segment. In addition, it will deploy a part of the funds for product innovation, distribution, and marketing of its brands. The expansion of distribution for Mamaearth and The Derma Co. will remain another focus area.
“The recent round will empower us to fuel our innovation funnel and provide a wider assortment of problem-solving personal care products for millennials. The round will further provide impetus to our innovation funnel and help us serve our consumers with a wider assortment of products,” Ghazal Alagh, co-Founder and CIO, Honasa Consumer Pvt. Ltd., said.
According to Ishaan Mittal, MD, Sequoia India, as the discovery and consumption of FMCG brands is getting more influenced by digital channels, it is providing a unique opportunity to founders to build brands of the future. Mamaearth has established itself as a clear market leader in this digital-first consumer goods space, Mittal added.