The round also saw participation from existing investors, Fireside Ventures, Stellaris Venture Partners and Sharp Ventures. Some early angels have exited the company in this round with a return of over 20x on their initial investment, Mamaearth said in a statement.
The company plans to use the freshly acquired funds over the next 3 years to continue its
growth, building it into a 500 crore brand by acquiring 5 million new consumers. 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 the new-age, millennial consumers, the statement added.
Apart from this, the company plans to utilise the funds to expand into key markets in Southeast Asia, and hire talent.
“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,” Varun Alagh, Founder and CEO of Mamaearth, said.
Founded in 2016 by husband-wife duo Varun and Ghazal Alagh, MamaEarth claims to offer 100 per cent toxin-free & natural skincare, hair care & baby care products. Its range includes 80+ natural, toxin-free products, with 1.5 million+ consumers in over 500 cities across India.
The company said it is building a new range of direct to consumer brands that use the internet-first approach to reach the target audience.
“Out of India’s $15B+ personal care market, online channels contribute to only 3-5%. With 15-20% 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,” Ishaan Mittal, Principal, Sequoia Capital India LLP said.
Mamaearth counts a number of prominent angels as investors, including Marico’s Rishabh Mariwala, who manages Sharrp Ventures; Snapdeal co-founders Kunal Bahl and Rohit Bansal; and actor and entrepreneur Shilpa Shetty Kundra. It raised $4 million led by Stellaris and Fireside in September 2018, and $1 million from Fireside in September 2017.