Honasa Consumer, which owns and operates toxin-free and natural personal care brand Mamaearth, has raised $18 million in a fresh round of investment led by venture capital firm Sequoia Capital India.
Returning investors Fireside Ventures, Stellaris Venture Partners and Sharp Ventures also participated in this round, the company said in a statement.
Some of its early angel investors have exited during this round, clocking over 20 times returns on their investment.
According to data available with VCCEdge, the startup has so far raised $5 million in four rounds. Other angel investors in the company include Snapdeal co-founders Kunal Bahl and Rohit Bansal; and Bollywood actress and entrepreneur Shlipa Shetty Kundra.
Mamaearth will use the funds to launch a new range of direct to consumer brands, hire more talent and expand into key markets in Southeast Asia to push its internet-first growth strategy, targeting new-age and millennial consumers. It aims to build a 500 crore brand by acquiring 5 million new consumers over the course of the next three years.
“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-and-wife duo Varun and Ghazal Alagh, the startup began operations with a slew of babycare products for children up to the age of five years. It later expanded product portfolio and currently offers more than 80 natural and toxin-free skincare, hair care and baby care products over 1.5 million consumers in 500 cities across India.
Mamaearth products are available across major ecommerce platforms and on its own website. The brand is now expanding its footprint to offline channels.
“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, said.