Mamaearth, the rising D2C new-age consumer brand, has confirmed on July 26 about the funding raise of $50 million led by Belgian investor Sofina Ventures. The current funding round has helped the brand in surging its valuation to $730 million.
Mamaearth Closed $50 Million Funding Round
Mamearth, India’s toxin-free personal care products provider, reached a valuation of $730 million in its latest funding round. Within nine months, It almost doubled its valuation after a funding raise of $50 million. D2C startup had a valuation of $300 million 9 months ago. Mamaearth revealed that the current financing event was led by Sofina Ventures, a Belgian-based investment firm.
In the latest event, Mamaearth also recorded a partial stake sale by its early investors including Fireside Ventures, Stellaris Venture Partners, Sharp Ventures, and Titan Capital. But, the startup did not reveal the exact amount of stake sale by the investors.
Talking about the latest funding utilization, co-founder and CEO of Mamaearth Varun Alagh said “This round will help amplify the process and strengthen the D2C and offline expansion of Mamaearth, along with further accelerating the growth of The Derma Co., which is already showing early signs of success since its launch in 2020.”
Sequoia India, one of the early backers of Mamaearth, praised Mamaearth progress in the personal care industry a lot. Talking about its toxin-free products and the market size, 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.”
Mamaearth and its Future Plans
Varun and Ghazal Alagh, a husband-wife duo, did not find any toxin-free product for their newly born baby. That is how they came up with the idea of a chemical-free personal care products startup and founded Mamaearth in 2016. Mamaearth benefitted a lot from the popularity of direct-to-consumer brands among consumers. The startup provided cost-effective skin-friendly products directly to the customers via its website and also sold them through e-commerce giants including Amazon and Flipkart.
The offline retail industry in India is still very huge. With the current funding, Mamaearth also plans to strengthen its presence offline to reach a wider audience. Currently, the startup has over 80 toxin-free, natural products, including bamboo-based baby wipes, face masks, lotions, and hair care products. Mamaearth also started a new brand named Derma in the last quarter of 2020.
In FY2020, the personal care products startup recorded a revenue of Rs 110 crore due to its impeccable influencer marketing strategies. Currently, Mamaearth did not reveal the exact detail of its revenue but said that it has a revenue rate of Rs 42 crore per month.
After the immense popularity and success of the Thrasio model in India within few months, Mamaearth plans to become a house of brands and will utilize the current funding in acquiring rising digital brands. GlobalBees, the Thrasio modeled startup, has already created an uproar in the Indian startup ecosystem by closing the highest ever Series A funding round of $150 million. It has also acquired a dozen of digital brands within three months of its journey.
