Honasa, Mamaearth's parent firm, becomes the first unicorn of 2022, raising $52 million

Honasa, a digital-first consumer goods platform that owns Mamaearth and other personal care brands, announced on Saturday that it has secured $52 million in a round led by Sequoia Capital, making it the first Indian unicorn of 2022.

Honasa Consumer Pvt Ltd said it will continue to aggressively expand distribution for current brands Mamaearth and The Derma Co., as well as investigate strategic inorganic development prospects in the beauty and personal care market.

"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.

Sofina Ventures SA, a Belgian investment firm, and Evolvence, an India-focused fund located in the United Arab Emirates, both participated in the round.

Employees were also able to cash in on their vested ESOPs during the round.

"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.

Honasa has grown into a billion-dollar personal care House of Brands in just five years, serving over 1,000 cities across India.

In India, at least 42 firms became unicorns (those with a market price of more than $1 billion) and received over $39 billion in funding.