Mamaearth’s parent company, Honasa Consumer buys majority stake in skincare brand Dr. Sheth’s
- ByStartupStory | May 17, 2022
Dr. Sheth’s is one of the leading skincare brands founded by Dr.Aneesh Sheth in 2017 and produces many skincare products to fix skin problems such as aging, pigmentation, acne, dry skin, and blackheads.
Honasa Consumer, Mamaearth’s parent company, has bought a controlling ownership in Dr. Sheth’s, a skincare brand, for INR 28 crore. The new funds will be utilized to expand Dr. Sheth’s firm and boost Honasa Consumer’s leadership. Honasa Consumer will continue to invest in expanding its product line.
Honasa Consumer will also benefit from the purchase by strengthening its place in the self-care market. In two years, Honasa Consumer hopes to turn Dr. Sheth’s into a Rs 100 Cr run rate brand.
Mamaearth recently announced that it has allocated 136 million equity shares as bonus shares to 12 stakeholders, including founders, at a 1:12,899 ratio. The value of the bonus shares is projected to be $17.4 million (INR 136.03 Cr).
Dr. Sheth’s is a skincare brand created especially for the Indian market promises to offer items through its direct-to-consumer website and other e-commerce platforms. Honasa Consumer joined the unicorn club at the same time after raising over $37 million in its Series F fundraising round. Following this, its post-money value surpassed $1.07 billion.
According to the regulatory filing, Honasa sold Sequoia Capital 839 Series F obligatory convertible preference shares for INR 284 crore.
Honasa Consumer allegedly secured $50 million in a fundraising round headed by Sofina Ventures SA in July of this year. Sequoia Capital India, an existing investor, took part in the round.
Nykaa, which is owned by FSN E-commerce, bought a share in three D2C businesses –Kica, Nudge Wellness, and Earth Rhythm -for an unknown sum in April of this year.
Nykaa will pay INR 41.65 crore for an 18.5 percent interest in Earth Rhythm, skincare, and hair care business.
The Indian cosmetic and skin care industry is expected to reach $37.5 billion by 2025, with a CAGR of 12.5%.
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