Exclusive: MamaEarth turns unicorn after a new round

Baby and mother care brand Mamaearth has raised close to $80 million in a new round at unicorn valuation led by Sequoia. This is the second round for the Bengaluru-based startup in 2021. In July, it had scooped up $50 million in a round led by Sofina at a valuation of $730 million.

MamaEarth has approved the allotment of 1,741 Series F preference shares at an issue price of Rs 33,85,049 to raise Rs 589.3 crore or $79.5 million, regulatory filings show.

Sequoia has led the round with an infusion of  Rs 311.8 crore followed by Sofina and Evolvence Fund with investments of Rs 222.06 crore and Rs 55.5 crore respectively. This appears to be a part of larger round and the company may raise more funds in it.

According to Fintrackr’s estimates, MamaEarth has raised the fresh funds at an estimated valuation of $1.07 billion, marking a 42.7% jump in valuation as compared to its valuation of $750 million in the last funding round. The company has joined the coveted club of unicorns in 2021 with 42 others.

MamaEarth is also among the few startups to turn unicorns with a woman co-founder. The list includes OfBusiness, MobiKwik, Good Glamm Group and Pristyn Care.

Following the fresh allotment of shares, MamaEarth’s promoters’ stake has been diluted to 35.3%.

The five-year-old company has emerged as one of the top D2C brands in India. It claims to have clocked total sales of around Rs 500 crore in the previous financial year and it further targets a two-fold jump in sales in FY22.

MamaEarth had recorded a 6.5X jump in operating revenue to Rs 110 crore in FY20. According to Fintrackr, the company’s losses stood at Rs 5.9 crore.

Mamaearth competes with The Moms Co, Sugar Cosmetic and many other brands in the baby-mother care segment and personal hygiene space. The Moms Co. was recently acquired by content and commerce platform Good Glamm Group for an undisclosed amount. 

As per media reports, Sugar Cosmetics is also in talks to raise a fresh round.