D2C start-up Mamaearth becomes the first unicorn of 2022 with $52 mn round

D2C start-up Mamaearth has raised $52 million in a funding round led by Sequoia at a valuation of $1.2 billion, becoming the first unicorn of 2022. Last year, India gave birth to 43 unicorns in the technology start-up sector.

The round witnessed participation by Sofina Ventures SA, the Belgium-based investment company, and Evolvence, a UAE based India focused fund. The round also gave employees an opportunity to monetise their vested ESOPs.

The company plans to deploy the funds towards expanding its portfolio of personal care D2C brands venturing into new categories. With the recent launch of Aqualogica, a hydration-based skin care brand, the company has forayed into a new segment catering to unique requirements of Indian skin and tropical weather.

The newly acquired funds will be directed towards product innovation, distribution, and marketing of brands in the company’s stable. Along with launching new brands, Mamaearth’s parent company Honasa Consumer will continue expanding distribution for existing brands and explore strategic inorganic growth opportunities in the beauty and personal care segment.

Varun Alagh, co-founder and CEO of Honasa Consumer, said, “We have been on a constant quest to become a company that is the first choice of evolving Indian millennials in the beauty and personal care segment. Our flagship brand, Mamaearth has established itself as a leader in D2C personal care with a strong purpose of Goodness Inside.”

“Looking at the scale of Mamaearth and the success of The Derma Co., we are confident that we have the expertise to build brands with a millennial connect. We will be deploying the funds towards brand launches, expanding distribution, inorganic growth and expanding the current portfolio across borders. Sequoia, Sofina and Evolvence have unique strengths in US, Europe & GCC respectively which will help us grow internationally and learn from others in these markets,” he added.

Ishaan Mittal, MD, Sequoia India said, “As discovery and consumption of FMCG brands is getting more influenced by digital channels, it is providing a unique opportunity to founders to build brands of the future. Mamaearth has established itself as a clear market leader in this digital-first consumer goods space and team Sequoia is delighted to double-down on the partnership with Ghazal and Varun in this journey.”