The funding has taken the company’s valuation to $730 millionn
New Delhi, NFAPPost: Mamaearth, the fast-growing toxin-free personal care brand, received the latest $50 Million round led by Sofina Ventures SA. The round witnessed participation from existing investor Sequoia Capital India too.
Along with primary infusion by Sofina Ventures SA, the Belgian-based investment company, the round also saw secondary sale by early investors like Fireside Ventures, Stellaris Venture Partners, Sharp Ventures and Titan Capital. 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.
Commenting on this, Mamaearth Cofounder and CEO Varun Alagh said with a vision to become a house of brands, the company 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 expansionof Mamaearth, along with further accelerating the growth of The Derma Co. which is already showing early signs of success, since its launch in 2020. We will also be exploring inorganic growth opportunities in the beauty and personal care segment,” said Varun Alagh.
He said the company would like to thank Sofina Ventures SA and Sequoia Capital India for reaffirming their faith in us along with our existing investors Fireside Ventures and Stellaris Venture Partners, for their undaunted support and trust in our journey so far.
Commenting on this, Mamaearth Cofounder and CIO Ghazal Alagh said the company is built on the proposition to solve problems for the millennials by addressing their concerns through safe and effective products.
“With a toxin-free and natural ingredient proposition, we started Mamaearth in 2016 with our baby care range and soon, on consumer demand, diversified into personal care led by our philosophy of ‘Goodness Inside’through our products and value system. Understanding the other end of the spectrum of millennial concerns, we then launched The Derma Co. last year, with an elaborate portfolio of science backed skincare products with active ingredients in the right percentages,” said Ghazal Alagh.
Ghazal Alagh said Mamaearth believes in constantly innovating product portfolio to stay relevant to audience by understanding their needs and innovating basis the changing consumer requirements.
“With this thought, we have been able to create a portfolio of 140+ products under Mamaearth and 40+ products under The Derma Co. To achieve this, we have built a diverse team of millennials who constantly endeavor to further our purpose. We strongly believe that our team forms our foundation, and the consumers are the reason for our being. We are committed to our purpose of goodness inside through toxin-free and safe products. The recent round that we closed will further provide impetus to our innovation funnel and help us serve our consumers with a wider assortment of products,” said Ghazal Alagh.
Yana Kachurina, Investment Manager, Sofina Ventures SA, said the Mamaearth team is constantly pushing the boundaries in the personal care space through their disruptive innovations, rapid execution pace and focus on delighting customers.
“Varun and Ghazal are visionary, ambitious and world-class entrepreneurs and we are proud to back them as their long-term partners,” said Yana Kachuria.
Sequoia India Principal Ishaan Mittal said Mamaearth has an audacious goal of disrupting the $25B personal care industry by using technology across the three key pillars of FMCG – product, marketing, and distribution.
“They have established themselves as a clear market leader in the digital first brands space, by providing consumers a refreshing bouquet of toxin-free products. The team at Sequoia Capital India are big believers in Ghazal and Varun’s vision and super excited to double down with another round of investment,” said Ishaan Mittal.