Honasa Consumer
Honasa Consumer, owner of Mamaearth, Derma Co, is the first unicorn of 2022, raises $52 million at valuation of $1.2 billion
Honasa Consumer, the parent company of personal care brands like Mamaearth and The Derma Co, said Saturday that it has raised $52 million in a round led by Sequoia at a valuation of $1.2 billion, according to media reports.
The new funding comes six months after the Honasa raised $50 million in a funding round led by Sofina Ventures, valuing it at $730 million, Money Control reported.
Sofina Ventures SA and Evolvence also participated in the round.
“We will be deploying the funds towards brand launches, expanding distribution, inorganic growth, and expanding the current portfolio across borders,” said Varun Alagh, Co-Founder and CEO, Honasa Consumer, the report stated.
Honasa said the round also gave the employees to sell their vested ESOP (employee stock options), it did not mention the quantum or how many would benefit from it.
Honasa's other investors include Fireside Ventures and Stellaris Venture Partners.
Mamaearth and Derma Co. have emerged as the hottest new-age consumer brands in India, riding the so-called direct-to-consumer (D2C) wave, where brands sell to consumers directly from their website or via e-commerce platforms rather than going the traditional and expensive offline route.
"Looking at the scale of Mamaearth and success of The Derma Co, we are confident that we have the expertise to build brands with a millennial connect,” Alagh said. “Sequoia, Sofina and Evolvence have unique strengths the in US, Europe & GCC, respectively, which will help us grow internationally & learn from others in these markets.”
D2C brands start by selling their products online and are assisted by other ecommerce marketplaces such as Flipkart, Myntra, and Amazon. Sectors most lucrative for D2C brands include beauty and personal care, food and beverage (F&B), and fashion, according to the report.
The year 2021 was a blockbuster one for the Indian startup ecosystem, with 43 new-age companies valued at more than a billion dollars. Before 2021, India had just 30 unicorns in all.
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