[Funding alert] Mamaearth joins unicorn club after raising around $37.5M

Honasa Consumer, which runs baby and mother care brand Mamaearth, has raised around $37.5 million in its latest funding round led by Sequoia, making it a unicorn. 

In July 2021, Mamaearth had secured $50 million in a funding round led by Sofina Ventures. This round had pushed the company’s valuation to $730 million. 

Mamaearth has approved the allotment of 839 Series F preference shares at an issue price of Rs 33,85,049 to raise around $37.5 million, according to regulatory filings. 

The baby and mother care company has become the 43rd startup to join the unicorn club in 2021 and is one of the few unicorns to have a female co-founder. 

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Launched in 2016, Mamaearth is one of the fastest-growing brands in India’s FMCG sector. It has grown to 140-odd SKUs in baby care, skincare, and haircare segments, and has served more than five million consumers across 500 cities. 

Founded by husband-wife duo Ghazal and Varun Alagh, the Gurugram-based startup crossed an annual revenue run rate of $100 million (Rs 700 crore) in the financial year 2021. 

Earlier this month, Mamaearth acquired parenting content platform Momspresso and associated influencer marketing platform, Momspresso MyMoney for an undisclosed amount.

Mamaearth has employed a house-of-brands strategy through which it wants to go deeper in the direct-to-consumer beauty and personal care segment.

The startup's key competitors include WOW Skin Science, Body Cupid, SkinKraft, Juicy Chemistry, and Plum, among others.

The D2C beauty and personal care segment is projected to be worth $28 billion by 2025, according to an Avendus report.