Honasa Consumer Pvt Ltd, parent company of personal care brand Mamaearth and The Derma Co, has raised just over $ 37 million in its Series F funding round, making it the 45th unicorn or startup with a valuation of over $ 1 billion in 2021 in India.
The fundraiser values Honasa Consumer at $ 1.07 billion according to estimates by VCCircle, based on documents filed with the Registrar of Companies.
The funding was led by Sequoia Capital Growth Fund III of Sequoia Capital, according to regulatory documents. As part of the transaction, the company issued 839 Compulsory Convertible Preference Shares (CCPS), with a par value of Rs 10 each at a total issue price of Rs 33,85,049 each for cash consideration.
The new capital was raised for the expansion of its activities and to finance its operations, according to regulatory documents. The Entrackr news site first reported on the development, saying the funding had been raised at a valuation of more than $ 1.07 billion. An email sent to Honasa Consumer did not elicit an immediate response.
The company raised $ 50 million in July from European investment firm Sofina Ventures SA and Sequoia Capital, which then valued the personal care products company at $ 730 million.
The company said at the time that it would use the funds to drive brand growth by aggressively expanding its offline distribution and exploring opportunities for inorganic growth in beauty and personal care.
Honasa Consumer had added that the company would give some of its first employees the opportunity to monetize their acquired ESOP. Since then, the company has acquired the Momspresso content platform and the Momspresso MyMoney influencer engagement platform. The company also recently announced an ESOP worth Rs 20 crore for all employees.
The company currently has a portfolio of around 140 products under Mamaearth and more than 40 products under The Derma Co. The company also said it plans to become a “house of brands”. The “house of brands” strategy, also referred to as the Thrasio model, is increasingly popular with new age brands who are aggressively acquiring businesses in an attempt to expand their product offering.
VCCircle recently announced that The Good Glam Group, the parent company of MyGlamm, is in talks to invest in a men’s skincare brand, Ustraa. The Good Glamm Group recently announced that it had invested Rs.100 crore in Sirona, a startup specializing in feminine hygiene products, and had acquired Miss Malini Entertainment, a talent management network for media and celebrity influencers, for a undisclosed amount.