Honasa Consumer, the parent company of Mamaearth, and The Derma Co, has bought a majority stake in dermatologist-formulated skincare brand Dr Sheth’s, valuing the company at Rs 28 crore.
The primary round of funds will be directed to accelerate the growth of the Dr Sheth’s brand, Honasa Consumer said on May 16, without sharing more financial details of the deal.
“This partnership as it will help us widen our portfolio offerings under the HCPL (Honasa Consumer) umbrella. It will be a symbiotic relationship wherein there will be knowledge sharing across brands and collaboratively build the brand and its product portfolio, said Varun Alagh, Co-founder and Chief Executive Officer, Honasa Consumer.
Dr Aneesh Sheth, who founded Dr Sheth’s in 2016, will continue to lead the business and product innovation for the brand.
The company manufactures products for skin concerns like pigmentation, acne, dryness, and wrinkles and houses popular brands like Amla VC20 Vitamin C Serum, Haldi and Hyaluronic Acid Sleeping Mask, Cica and Ceramude Overnight Repair Serum, among others.
Dr. Sheth’s claims to have over 30 store-keeping units and said it catered to over 200,000 consumers. The company said it was betting on the evolving needs of millennials who want skincare products having a mix of traditional Indian and science-based ingredients.
Honasa Consumer’s digital-first capabilities will synergise well with Dr Sheth’s expertise of creating specialised skincare products for Indian consumers helping Dr Sheth’s to scale its operations, Honasa Consumer said.
Honasa Consumer had attained expertise in building millennial brands with a digital-first approach, Alagh said.
“We will utilise our expertise and proficiency in digital marketing to accelerate the growth and scale growth for Dr. Sheth’s and we are confident that we will make it a Rs 100- crore run rate brand in two years,” he added.
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