Mamaearth is a babycare and skincare brand. They are seeking a valuation of Rs 2000 crores, with existing investor Sequoia Capital set to invest an extra $20-30 Mn.
Mamaearth was founded in 2016 by Varun and Ghazal Alagh, Mamaearth, run by Honasa Consumer, offers over 80 natural, toxin-free products, including bamboo-based baby wipes, lotions, and face masks. Online-led brands such as Mamaearth have been boosted during the pandemic which has made consumers more digitally savvy and responsive to online brands.
“Mamaearth wanted to hit the market for a formal round and had a few early conversations but Sequoia is quite bullish on them, so they want to double down,” said one person close to the company, who did not want to be named.
Sequoia India also raised $1.35 billion- a $525 million venture fund and $825 million growth fund in July to back Indian and Southeast Asian startups. It expected to put money into Mamaearth from the $825 million funds
“Sequoia India generally raises a fund every two years. So to deploy this much money in two years, there will be a lot of internal rounds where Sequoia will double down,” said a person tracking the firm, requesting anonymity.
Brands such as Mamaearth, Sugar Cosmetics, Wakefit, and Man Matters (Mosaic Wellness) are also counting on the fact that these consumers are not looking for deep discounts, and willing to often pay a slight premium for better quality or a differentiated product- especially when it comes to health and wellness.