Honasa Consumer Pvt Ltd, which operates direct-to-consumer brands Mamaearth and The Derma Co, etc plans to raise about Rs 2,900 crore through an initial public offering (IPO), as per reported by VCCircle.
Prominent backers of Mamaearth, such as Sofina Ventures, Stellaris, Fireside Ventures, and Evolvence, plan to partially sell their holdings through the IPO. Sequoia is not currently looking to sell any shares.
Currently, Fireside owns around 10.4% of the company, Sofina and Stellaris about 9.5%, and Evolvence about 1.4%.
Investors including Kunal Bahl, Rohit Bansal, Shilpa Shetty Kundra, and Rishabh Mariwala of Sharrp Ventures will also dilute their stakes through the IPO.
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According to Honasa Consumer’s DRHP, the firm intends to spend the money for advertising expenses (Rs 186 crore), capital expenditures in exclusive brand shops (Rs 34.23 crore), and investing its brand BBlunt for opening new salons (27.5 crore).
In addition to Sofina and Evolvence, notable investors Sequoia Capital and Ghazal and Varun Alagh have backed the Gurugram-based company since its founding in 2016. When it raised $52 million as part of its Series F investment round earlier this year, in January 2022, it became a unicorn.
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