Mother Sparsh Raises INR 20 Cr From ITC
- ByStartupStory | November 29, 2021
Baby and mother care D2C brand Mother Sparsh is going to raise INR 20 Cr in Series A funding from FMCG-to-hospitality major ITC.
Post the investment, ITC will acquire 16% stake in the startup.
The D2C startup plans to deploy the funds towards enhancement of its research and development (R&D) and digital capabilities, drive new product launches and expand the team.
The transaction is expected to complete in eight months.
Mother Sparsh co founder and CEO Himanshu Gandhi said, “We expect to scale-up our revenues to INR 300 crore over the next three to five years.”
Cofounder Rishu Gandhi said that currently the company registers over 85% of its sales through online channels. Over the past 12 months it diversified its product portfolio by over 25%.
Incorporated in February 2016, Mother Sparsh is a premium ayurvedic and natural, baby and mother care brand. Its turnover in FY21 was INR 15.44 Cr.
The mother and babycare segment has been growing with startups making headway among the large incumbent corporates.
According to an estimation by Data Bridge Market Research, the Indian baby care products market is expected to reach over $5 Bn by 2027, growing at a CAGR of 16.9% between 2020 to 2027. Currently, the market is dominated by non-premium baby care product ranges such as diapers, creams, soaps, among others.
Other players in the segment include FirstCry, Baby Shop Online, Mothercare, Meemee, Chicco etc.
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