In the bridge round, US DFC and others support Soothe Healthcare
- ByStartupStory | October 21, 2022
The female hygiene company Soothe Healthcare Pvt. Ltd. announced on Thursday that it had raised $175 crore (approximately $21 million) in a bridge round from existing investors and the US government’s Development Finance Corporation (DFC).
A91 Partners, Symphony International Holdings Ltd, Sixth Sense Ventures, and Gulf Islamic Investments (GII) contributed 120 crore in equity to the company, and US DFC contributed 55 crore in debt. The sole transaction advisor between US DFC and Soothe Healthcare was the advisory firm Intellecap.
With the money, Soothe Healthcare wants to reach more women in tier II and tier III areas and broaden its distribution network. Additionally, the funds will be utilised to increase marketing efforts and disseminate a wider social message on women’s menstrual hygiene.
Super Cute’s infant diapers, Paree sanitary pads, and Super Life adult diapers are all sold by Soothe Healthcare, a 2016 startup, through 250,000 stores in India and online merchants.
According to Sahil Dharia, CEO and founder, the
the majority of sales come from retail establishments in tier 2 cities and beyond. He declared that the business would continue to concentrate on selling its goods in brick-and-mortar locations.
Soothe Healthcare increased its sales to 200 crore in FY22, double it. According to Dharia, the company is anticipated to end this fiscal year with a revenue increase of over 30%, or roughly $265 crore.
About 55% and 35% of sales are made from infant diapers and sanitary pads, respectively. The remaining goods include adult diapers, hair removal lotions, and other things.
According to Dharia, the company intends to use the additional capital to boost its marketing initiatives in an effort to expand its presence in its current markets this year. Nearly 40% of the 1,400 individuals employed at Soothe Healthcare are women. The business has a factory in Noida where it makes its healthcare products.
According to a study analysis by Mordor Intelligence, this market in India is expected to increase at an annualised pace of 14.7% through 2022–2027 despite the low percolation of feminine hygiene products in tier II–III towns and rural areas. Its estimated worth in 2021 was $ 896.75 million, per the report.
Soothe Healthcare competes against firms like Saathi, Pee Safe, and Chennai-based Plush in addition to Proctor & Gamble and Johnson & Johnson, who dominate the market in which it operates.
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