Mamaearth to raise $60-80M from Sofina at $700M valuation
Belgian investment fund Sofina is at an advanced stage of discussions to drive a fresh funding round in personal care brand Mamaearth, two people familiar with the matter revealed.
The fresh infusion of capital is expected to value the direct-to-consumer brand at around $700 million from around $200 million in 2020, marking constant investor interest in D2C brands overall. D2C brands have benefited amid the Covid-19 pandemic as customers are more inclined towards online purchasing.
The funding round is anticipated to be in the range of $60-$80 million, with a primary component of about $50 million.
Sofina is supposed to already have a stake in Mamaearth via a secondary share sale, a process where the capital does not flow into the business directly but goes to investors selling their stakes.
“There has been a recent secondary sale including from their (Mamaearth) staff as well as from Sofina which has picked up a stake. Sofina is now leading the round which will be finalized by this month,” one of the people cited above said requesting anonymity.
Private equity firm Kedaara Capital had also had discussions with Mamaearth, but it was not instantly understood if it would take part in the new round, said two people aware of the development.
Despite its mass premium positioning, Mamaearth has grown past the top-tier metros.
“Mamaearth will use the new capital to expand heavily in the offline channel too. Other D2C brands are also doing the same,” one of the people quoted above said.
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