Gurugram-based Mamaearth has raised Rs 130 crore in a funding round led by Sequoia India with participation from existing investors Fireside Ventures, Stellaris Venture Partners, and Sharp Ventures.
The company said funds will be used to continue its growth — building it into a Rs 500 crore brand by acquiring five million new consumers in the next three years. It will also be utilised to launch more brands under the Honasa umbrella — all of which will be focused on the needs of the new-age, millennial consumers.
The startup also plans to expand into key markets in Southeast Asia, where the presence of a similar millennial audience lends it strong market potential.
Commenting on the investment, Varun Alagh, Founder and CEO, Mamaearth, says,
“We have a long way to go at Honasa (Mamaearth’s parent company). 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 ecommerce at large scale. Sequoia India’s investment at this stage of our journey validates this vision of building a global brand of the future.”
Founded in 2016 by husband-wife duo Varun and Ghazal Alagh, MamaEarth claims to be Asia’s first made-safe certified brand that offers completely toxin-free skincare, hair care, and baby care products.
Today, its product range claims to include over 80 natural and toxin-free products, with over 1.5 million consumers in more than 500 cities across India.
Ishaan Mittal, Principal, Sequoia Capital India, says,
“Out of India’s $15B+ 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 next 7-8 years, digital first brands have the potential to redefine the architecture of tomorrow’s FMCG companies. Varun’s vision is to ride these market tailwinds to create a multi-brand, cross geo FMCG company over the next decade. The team at Sequoia India is excited about being partners in this phenomenal journey.”
(Edited by Megha Reddy)