Honasa Consumer Pvt. Ltd. (HCPL), the parent company of Mamaearth, has recently acquired a huge stake in well-renowned skincare brand Dr. Sheth’s at a valuation of $3.6 million.
According to credible sources, the funding secured will be utilized to increase the scalability of Dr. Sheth’s business and solidify the leadership of Honasa Consumer. The company will further deploy the capital to expand its product range.
The acquisition of Dr. Seth’s brand is expected to strengthen Honasa Consumer's position in the personal care products market. The company has stated the target to make Dr. Sheth’s a $1 billion run rate brand in the upcoming two years.
According to the deal, Dr. Aneesh Sheth, Founder of Dr. Sheth’s, will continue to head the business operations and product innovation segment.
Incidentally, the latest news came after Mamaearth allotted 136 million equity shares as bonus shares to its 12 investors and founders in a ratio of 1:12,899. The total value of the allocated bonus shares is evaluated to be $17.4 Million.
For the uninitiated, Dr. Sheth’s is a skincare brand that primarily creates products targeted for the Indian demographic. It sells products through its D2C website and several other e-commerce platforms.
On the other hand, Hosana Consumer leads several consumer well-renowned brands such as The Derma Co., Mamaearth, Ayuga and Aqualogica. The major investors of Hosana Consumer include Stellaris Venture, Sequoia Capital India, Fireside Ventures, and Sofina SA. In addition to this, the company acquired hair color brand, BBLUNT for approximately $17.2 million in February 2022.
Furthermore, in July 2021, Honasa Consumer secured $50 Million in a funding round headed by Sofina Ventures SA. The round witnessed participation from Hosana’s existing investor, Sequoia Capital India
According to forecasts, the Indian beauty and personal care market is anticipated to touch $37.5 Billion by the year 2025, growing at a CAGR of 12.5%.