Mamaearth, the toxin-free personal care brand, has closed the latest $50 million round led by Sofina Ventures SA. The round witnessed participation from existing investor Sequoia Capital India too.
Along with primary infusion by Sofina Ventures SA, the Belgian-based investment company, the round also saw secondary sales by early investors like Fireside Ventures, Stellaris Venture Partners, Sharp Ventures, and Titan Capital. The round also gave some early employees an opportunity to monetize their vested ESOP.
The company plans to deploy the funds to drive brand growth through aggressively expanding its offline distribution and explore inorganic growth opportunities in beauty and personal care.
Commenting on this, Varun Alagh, Co-Founder and CEO, Mamaearth said, “With a vision to become a house of brands, the company is currently focusing on creating brands with millennial propositions with an internet-first approach. 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. We will also be exploring inorganic growth opportunities in the beauty and personal care segment. We would like to thank Sofina Ventures SA and Sequoia Capital India for reaffirming their faith in us along with our existing investors Fireside Ventures and Stellaris Venture Partners, for their undaunted support and trust in our journey so far.”
This new funding round has valued the brand at $730 million.
Commenting on this, Ghazal Alagh, Co-Founder and CIO, Mamaearth stated, “Our company is built on the proposition to solve problems for the millennials by addressing their concerns through safe and effective products. With a toxin-free and natural ingredient proposition, we started Mamaearth in 2016 with our baby care range and soon, on consumer demand, diversified into personal care led by our philosophy of ‘Goodness Inside’through our products and value system. Understanding the other end of the spectrum of millennial concerns, we then launched The Derma Co. last year, with an elaborate portfolio of science-backed skincare products with active ingredients in the right percentages.”
“We believe in constantly innovating our product portfolio to stay relevant to our audience by understanding their needs and innovating basis the changing consumer requirements. With this thought, we have been able to create a portfolio of 140+ products under Mamaearth and 40+ products under The Derma Co. To achieve this, we have built a diverse team of millennials who constantly endeavor to further our purpose. We strongly believe that our team forms our foundation, and the consumers are the reason for our being. We are committed to our purpose of goodness inside through toxin-free and safe products. The recent round that we closed will further provide impetus to our innovation funnel and help us serve our consumers with a wider assortment of products,” he added.
Yana Kachurina, Investment Manager, Sofina Ventures SA, said, “The Mamaearth team is constantly pushing the boundaries in the personal care space through their disruptive innovations, rapid execution pace, and focus on delighting customers. Varun and Ghazal are visionary, ambitious, and world-class entrepreneurs and we are proud to back them as their long-term partners.”
Ishaan Mittal, Principal, Sequoia India, 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 brand's space, by providing consumers a refreshing bouquet of toxin-free products. The team at Sequoia Capital India are big believers in Ghazal and Varun’s vision and super excited to double down with another round of investment.”
In a strategic move reinforcing its commitment to Madhya Pradesh's economic landscape, Hindustan Coca-Cola Beverages (HCCB), a prominent FMCG player in India, has disclosed a Rs 350 crore investment in the state. This announcement, made during a meeting between the Chief Minister of Madhya Pradesh, Dr. Mohan Yadav, and a senior HCCB delegation, propels the company's cumulative investment in the state to over Rs 660 crore.
The capital injection will fuel the establishment of two cutting-edge manufacturing lines at HCCB's Rajgarh factory, dedicated to producing Affordable Small Sparkling Packs (ASSP) and Juice Tetra Packs. Beyond expanding manufacturing capabilities, this move is poised to make a substantial contribution to the state's economy. With a robust network of 149 distributors and 127,080 retailers, HCCB plays a pivotal role in Madhya Pradesh's retail sector, distributing approximately 10 million cases across 29 districts.
In reciprocation, the Madhya Pradesh Government has committed comprehensive support to expedite HCCB's procurement of necessary permissions, approvals, and clearances, aligning with the state's policies and regulations.
Himanshu Priyadarshi, Chief Public Affairs, Communications, and Sustainability Officer at HCCB, stated, “This investment is a significant step in our journey with Madhya Pradesh - a state that is poised for growth and development. We see this as an opportunity to deepen our commitment and align our growth with the state’s vision. This is more than an expansion of our business operations; it is about reinforcing our roots in a state that is key to our market strategy and a hub for innovation. We envisage this project as a catalyst not only for regional economic growth but also as a conduit for nurturing local talent, thereby contributing to the socio-economic progress of Madhya Pradesh.”
Having invested over Rs 311 crore in Madhya Pradesh since 2000, including recent expansions in 2022 and 2023, HCCB has consistently demonstrated its commitment to enhancing production capabilities and supporting the local economy. This latest financial commitment not only cements its industrial presence in the state but also aligns with HCCB's dedication to delivering innovative and high-quality products to consumers in Madhya Pradesh.
HCCB's engagement in Madhya Pradesh transcends business investments, extending to Corporate Social Responsibility (CSR) initiatives. These projects focus on water rejuvenation, skill development, and sustainable agriculture. Notably, the initiatives have impacted 1200 youths in sales and marketing training, 1500 women in digital and financial literacy, and over 100 farmers in adopting sustainable agricultural practices. Additionally, HCCB has facilitated the installation of water ATMs and Smartboards, contributing to community resources.
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