Digital-first consumer brands platform Honasa, that owns personal care brands like Mamaearth, on Saturday said it has raised $52 million led by Sequoia, becoming the first Indian unicorn of 2022.
Along with launching new brands, Honasa Consumer Pvt Ltd said that it will continue to aggressively expand distribution for existing brands — Mamaearth and The Derma Co. — and explore strategic inorganic growth opportunities in the beauty and personal care segment.
“Our flagship brand, Mamaearth has established itself as a leader in D2C personal care with a strong purpose of Goodness Inside. Looking at the scale of Mamaearth and the success of The Derma Co., we are confident that we have the expertise to build brands with a millennial connect,” said Varun Alagh, Co-founder and CEO, Honasa.
The round also saw participation by Sofina Ventures SA, the Belgium-based investment company, and Evolvence, a UAE-based India focused fund.
The round also gave employees an opportunity to monetise their vested ESOP.
“As discovery and consumption of FMCG brands is getting more influenced by digital channels, it is providing a unique opportunity to founders to build brands of the future,” said Ishaan Mittal, MD, Sequoia India.
Currently catering to over 1,000 cities in India, Honasa has become a billion-dollar personal care House of Brands in just five years.
India saw at least 42 startups becoming unicorns (each with a market valuation of over $1 billion), that registered over $39 billion in overall investment.