New Delhi, Jan 8, 2020: Personal Skin & baby care brand Mamaearth has raised $18 million (Rs 130 crore) in funding led by Sequoia India.
The funding also saw participation from existing investors, Fireside Ventures, Stellaris Venture Partners and Sharp Ventures.
Founded in 2016 by husband-wife duo Varun and Ghazal Alagh, MamaEarth offers skin and hair care, and baby care products.
The company plans to use the freshly acquired funds over the next three years to continue its growth, building it into a $70 million brand by acquiring five million new consumers, a statement said.
The funds will also be used to launch more brands under the Honasa umbrella all of which will be internet-first and focused on the needs of millennial consumers, it added.
Honasa is the parent company of personal care brand Mamaearth.
The company plans to utilise the funds to hire talent as the organization scales rapidly. It also plans to expand into key markets in Southeast Asia.
“Our vision is to create the FMCG conglomerate of the future by building brands that connect strongly with millennials and Gen Z customers using the combined power of digital marketing and e-commerce at large scale,” Mamaearth founder and CEO Varun Alagh said in a statement.
Mamaearth, with a Rs 100 crore run-rate, has over 80 products in its portfolio with more than 1.5 million consumers in over 500 cities across India.
“Out of India’s over USD 15 billion personal care market, online channels contribute to only 3-5 percent. With 15-20 percent of Indian shoppers influenced digitally and expected to double in the next 7-8 years, digital first brands have the potential to redefine the architecture of tomorrow”s FMCG companies,” Sequoia Capital India LLP Principal Ishaan Mittal said.