India’s Mamaearth is the latest unicorn after $52m funding

The parent company of baby and mother care brand Mamaearth, Honasa Consumer Pvt Ltd, has earned the title of unicorn after raising $52m USD in the latest funding round led by Sequoia, valuing it at $1.2b USD. The new funding round saw participation by Belgium-based investment fund Sofina Ventures and the UAE-based India-focused fund Evolvence Capital.

The round also gave its employees an opportunity to monetize their vested employee stock option plans. Honasa Consumer has also issued 839 compulsorily convertible preference shares (CCPS) at an issue price of Rs 33,85,049 to raise the aforesaid amount, according to the company’s latest regulatory filings.  The company plans to use the funds to expand its portfolio of personal care D2C (direct-to-consumer) brands, product innovation, distribution and marketing, the company said in a statement on Sunday.

It also recently entered the skincare market with Aqualogica, a hydration-based skincare brand. It also plans to use the funds to grow in the beauty and personal care markets.

Founded in 2016 by Ghazal Alagh and Varun Alagh, Mamaearth offers 100% toxin-free and natural baby care, skincare, and hair care products. It has a product portfolio of more than 120 products and claims to have reached over 5 million customers in 500 Indian cities.

The company reported an annual revenue run rate of Rs 700 crore in the financial year of 2021.

They also recently acquired Momspresso, a woman-focused content platform, and its associated influencer engagement platform Momspressor MyMoney for an undisclosed amount.

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