Belgium-based Sofina to invest $27 mn in personal care brand Mamaearth

By Debjyoti Roy

  • 23 Jul 2021

Belgium-based Sofina SA will invest around Rs 202 crore ($27 million) in personal care brand Mamaearth. 

Mamaearth, as per filings to the companies registrar, has already secured Rs 147 crore and the remaining capital will come in tranches. 

In April, VCCircle was the first to report that the brand, operated by Honasa Consumer Pvt Ltd, was in talks with Sofina for a $20-25 million round to facilitate exits for Fireside Ventures and Stellaris Venture Partners. 

An email query to Mamaearth didn’t elicit any response till the time of publishing this report. 

The startup was founded in 2016 by the husband-wife duo Varun and Ghazal Alagh. Its portfolio includes body lotions, rash creams, shampoos, body wash, massage oils and baby care products. 

Mamaearth says it is building a new range of direct-to-consumer brands using an internet-first approach to target core audiences. 

Mamaearth, as per sources, is also trying to snap up several smaller startups in personal care and wellness category to create a ‘House of Brands’.  

The company had raised its Series B round in January last year led by Sequoia Capital India. 

The firm had posted net sales of Rs 109.7 crore for fiscal year 2019-20 as against Rs 16.8 crore a year before. It is yet to achieve operational breakeven, as per VCCEdge. 

The broader beauty and personal care segment has attracted a slew of investors over the past few years.   

Early this month, Marico, the maker of Parachute hair oil and Saffola cooking oil, picked up a majority stake in a D2C personal care brand.  

In June, VCCircle reported that venture capital firm and growth equity investor Sequoia Capital is considering investing in a beauty brand in an attempt to capitalise on the craze for D2C brands among millennials.   

 In April, VCCircle reported that US-based cosmetics maker Estée Lauder is in talks to take control of a homegrown personal care brand in which it owns a minority stake.  

In February, homegrown private equity firm ChrysCapital was reported to be in discussions to invest in a reputed skin care and wellness brand.

The same month, Scentials Beauty Care and Wellness raised $6 million from local buyout fund TIW Private Equity.  

 Before that, SUGAR Cosmetics raised $21 million (Rs 153 crore) in its Series C funding round led by Elevation Capital (formerly SAIF Partners).