An Indian skin care products startup gets a $750 million valuation with $50 million cheque for new acquisitions
- The funding round has also provided partial exits to some of Mamaearth’s early investors.
- Mamaearth will also use the funding to double down on its brand’s growth through offline expansion.
- Mamaearth has crossed ₹300 crore in revenue in the financial year 2020-21.
AdvertisementGurugram-based personal care startup Mamaearth has raised $50 million in a funding round led by Belgian investment fund Sofina.
Mamaearth, founded by Ghazal Alagh and Varun Alagh, will use the funding to double down on its offline expansion, particularly its skincare brand Derma Co, including acquisitions in the beauty and personal care space.
Existing investor Sequoia Capital also participated in the round, which valued Mamaearth at $730 million. The latest round was mostly in the form of fresh issue of shares, although some existing investors partially sold their stake.
Investors who sold some of their shares in this round:
|Stellaris Venture Partners|
Besides this, the company has also bought back shares from some of the early employees.
“The plan is to double the sales by 100% this year. Because of COVID-19’s second wave, offline expansion was halted, but now we plan to deepen our offline presence,” the company’s co-founder Varun Alagh has said.
The Gurugram-based direct-to-consumer (D2C) personal care brand Mamaearth was founded in 2016. The company had started its journey as a baby care brand, but eventually evolved into a personal care brand.
The company has expanded its product line by introducing 12 products in the beginning of 2020, which led to a surge in the company’s revenue in the financial year 2021.
Kanwaljit Singh of Fireside Ventures, one of Mamaearth’s investors, in an event held on January 20, had announced that Mamaearth has crossed ₹300 crore in revenue for financial year 2020-21.
Mamaearth’s revenue had grown nearly six-fold in FY20 to ₹112 crore, from ₹17.9 crore in FY19, according to data platform Tofler. The company has 140 products, which are sold both online and offline across 12,000 stores pan India.
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