Honasa Consumer, the parent company of personal care brand Mamaearth and The Derma Co, has raised $52 million in the latest round of funding led by Sequoia to enter the coveted unicorn club, at a valuation of $1.2 billion.

Other investors who participated in the funding round include, Belgium-based investment company Sofina Ventures SA and Evolvence, a UAE-based India-focused fund. The round provided an option for monetisation of employee stock ownership plans (ESOPs), the company said in a statement.

"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 & learn from others in these markets," said Varun Alagh, co-founder and CEO, Honasa Consumer.

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The company also said it will utilise the fresh capital for the expansion of its portfolio of personal care D2C brands. Honasa Consumer recently launched Aqualogica, a hydration-based skincare brand to foray into a new segment.

In addition, it will deploy a part of the funds for product innovation, distribution, and marketing of its brands. The expansion of distribution for Mamaearth and The Derma Co. will remain another focus area, the firm added.

Launched in 2016, Mamaearth has grown to 140-odd SKUs in baby care, skincare, and haircare segments, and has served more than five million consumers across 500 cities. The startup crossed an annual revenue run rate of $100 million in the financial year 2021.

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The company also has a vision of becoming a 'House of Brands' to go deeper in the D2C beauty and personal care segment. In December 2021, Mamaearth acquired parenting content platform Momspresso and associated influencer marketing platform, Momspresso MyMoney for an undisclosed amount.

The global beauty and personal care market are expected to touch $725 billion by 2025, according to a report by Avendus. India has added 80 million online shoppers in the last three years alone to reach 130 million. As per the Avendus report, the estimated beauty and personal care market size in India is expected to reach $28 billion in 2025.

(Edited by : Jomy Jos Pullokaran)

First Published:Jan 1, 2022 12:58 PM IST