The direct-to-consumer (D2C) baby care business Mother Sparsh has received an additional investment of Rs 13.50 crore from Indian conglomerate ITC Ltd. Additionally, it is in active discussions with additional investors to raise between Rs 90 and Rs 100 crore in a Series B round of funding.
On Wednesday, the D2C brand said that it is in active discussions with investors to secure Rs 90–100 crore in Series B funding, with ITC investing Rs 13.5 crore in this.
ITC stated in a late-night regulatory statement on Tuesday that following the transaction, its shareholding in Mother Sparsh will increase from the current 16 to 22%.
“The Company has entered into an agreement to acquire a further 1,000 Compulsorily Convertible Preference Shares of Rs 10 each of Mother Sparsh. The said shares, once acquired, will take the company’s shareholding in Mother Sparsh to 22 per cent,” the filing said.
According to ITC, the acquisition is consistent with the company’s ongoing focus on the rapidly expanding D2C market for personal care products.
Mother Sparsh received Series A funding from ITC in November of last year. The company, which was founded in February 2016, reported a revenue of Rs 33.53 crore in FY22.
The D2C brand wants to expand its portfolio after receiving Series B funding, notably in the mother-focused and baby skin care markets. The Ambala-based company has just entered the diaper market.
“Mother Sparsh’s objective behind the Series B funding round is to enhance R&D and foster innovation in the critical baby and mom care segment alongside sustained product portfolio diversification,” the company said.
The company’s co-founder and CEO Himanshu said: “Our recurrent funding aims to strengthen this mission through R&D and offering one-of-its-kind solutions for the needs of mothers and their little ones”.