Online baby care brand Mamaearth bags $18m in Sequoia India-led round

Indian baby care startup Mamaearth, operated by Honasa Consumer Pvt. Ltd., announced that it has raised about US$18.2 million in a funding round led by Sequoia Capital India.

Existing investors including Fireside Ventures, Stellaris Venture Partners, and Sharp Ventures also participated in the round.

It is said to be the biggest funding round for an internet-first consumer company in India.

Photo credit: Mamaearth

According to the startup, it will use the funds to drive its growth for the next three years. It also looks to acquire 5 million new customers, launch more brands, hire new talent, and expand into key markets in Southeast Asia, where the company sees a strong market potential.

“Our vision is to create the FMCG conglomerate of the future by building brands that connect strongly with millennials and Gen Z customers using the combined power of digital marketing and ecommerce at large scale,” said Varun Alagh, founder and CEO of Mamaearth.

The direct-to-consumer brand uses an internet-first approach to reach millennial consumers – its target audience – and said it combines in-depth research and customer feedback to create its products.

“Out of India’s US$15 billion+ personal care market, online channels contribute to only 3% to 5%. With 15% to 20% of Indian shoppers influenced digitally and expected to double in next seven to eight years, digital-first brands have the potential to redefine the architecture of tomorrow’s FMCG companies,” said Ishan Mittal, principal at Sequoia Capital.

Founded in 2016 by husband-wife duo Varun and Ghazal Alagh, Mamaearth offers 100% toxin-free and natural skincare, hair care, and baby care products. Today, the company has a range of over 80 products, serving more than 1.5 million consumers in over 500 cities in India.

The company aims to be a global billion-dollar FMCG conglomerate in the next five years.