E-commerce Platform Honasa Consumer raises $52 million, becomes First Unicorn of 2022
The personal care platform, which offers its goods under the Mamaearth, The Derma Co, and House of Brands labels, said that Sofina Ventures of Belgium and Evolvence Capital of the United Arab Emirates participated in the current funding round.
Fireside Ventures and Stellaris Venture Partners had previously invested in the company.
Employees have been able to cash in on their vested ESOPs as a result of the round.
Honasa said in a statement that the funds will be used to develop its portfolio of personal care D2C (direct-to-consumer) brands, product innovation, distribution, and marketing.
Aqualogica, a hydration-based skincare brand, was its most recent entry into the skincare segment. It also intends to use the money to pursue inorganic growth possibilities in the beauty and personal care industries.
Varun Alagh, co-founder and CEO of Honasa, stated that their flagship brand Mamaearth is a leader in the D2C personal care category, and that The Derma Co is on the right track.
Sequoia, Sofina, and Evolvence, he added, each have distinct capabilities in the US, European, and GCC markets, which will help the company expand internationally and learn from others in these sectors.
Honasa co-founder and Chief Investment Officer Ghazal Alagh says, "Since millennials' personal care concerns are dynamic and with our direct-to-consumer approach, we've been able to build an extensive portfolio of products across the baby care, skincare, haircare and colour cosmetics under Mamaearth and a portfolio of over 40 products under The Derma Co."
Sequoia India Managing Director Ishaan Mittal stated that as the discovery and consumption of FMCG brands are 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 Sequoia is delighted to double-down on the partnership in this journey."
The GCC market, according to Rohit Batra, managing partner at Evolvence, would be receptive to the Honasa brands, particularly Mamaearth, and early indicators have been encouraging as the company scales in the region.
Honasa is a five-year-old company with brands including Mamaearth, The Derma Co, and Aqualogica that reach out to over 1,000 locations. It claims to have sold them for a total of $1 billion.