Ghazal Alagh & Varun Alagh founded Mamaearth raises funds led by Sofina Leads

By: WE Staff | Monday, 26 July 2021

One of the most valued new-ae D2C brands in the country, Mamaearth raises $50 million in a funding round led by Belgian investment fund Sofina, valuing the direct-to-consumer (D2C) personal care brand at $730 million.

Existing investor Sequoia Capital joined the round, while early investors Fireside Ventures, Stellaris Venture Partners, Sharp Ventures, and Titan Capital sold some stakes in a secondary transaction, according to the company.

The money from a secondary share sale does not go directly to the company, but rather to investors who are selling their stakes.

Existing investor Sequoia Capital joined the round, while early investors Fireside Ventures, Stellaris Venture Partners, Sharp Ventures, and Titan Capital sold some stakes in a secondary transaction, according to the company.

The money from a secondary share sale does not go directly to the company, but rather to investors who are selling their stakes.

The most recent fundraising round was mostly in the form of primary capital infusion, with a share buyback from some of the company's early employees.

On May 13, sources said Sofina was looking to lead Mamaearth's new funding round. Sofina had acquired a small stake in Mamaearth through a secondary share sale, according to sources, but it had not been formally announced.

According to sources, the company was last valued at $200-$300 million. Mamaearth's valuation was around $100 million following a round of primary capital raising in early 2020, but that has gradually increased during secondary share sales over the past few months. 

According to Varun Alagh, cofounder and CEO of Mamaearth, the new capital will be used to double down on its brand's growth through deeper offline expansion as well as to explore acquisitions in the beauty and personal care space.

Alagh and his wife Ghazal Alagh founded the company in 2016, and the previous fiscal year saw total sales of around Rs 500 crore for its toxin-free products. “The plan is to double the sales by 100% this year. Because of Covid-19’s second wave, offline expansion was halted, but now we plan to deepen our offline presence,” Alagh said.

Ghazal Alagh, Mamaearth's co-founder and Chief Mama, is an artist, entrepreneur, corporate trainer, and a fantastic mompreneur. Mamaearth is Asia's first MadeSafe Certified Brand. A company that sells toxin-free and natural baby care, skincare, and hair care products.

According to a report by Jefferies' equity research unit, the company had sales of around Rs 109 crore in FY20.

“The Mamaearth team is constantly pushing the boundaries in the personal care space through their disruptive innovations, rapid execution pace and focus on delighting customers,” said Yana Kachurina, investment manager, Sofina Ventures SA.