ITC increases its Investment and Ownership in D2C company Mother Sparsh to 22%

ITC

ITC, a conglomerate that manufactures everything from cigarettes to hotels, expanded its investment in the Mother Sparsh baby care brand to 22% for INR 13.5 crore in response to the growing attention being paid to the Direct to Consumer (D2C) market.

According to a regulatory filing by the company, “1000 Compulsorily Convertible Preference Shares of INR 10 each of Mother Sparsh are proposed to be acquired,” said ITC. It further said that the “acquisition is in line with the company’s continued interest in the fast-growing D2C space in the ‘personal care category.”

In November 2021, ITC paid INR 20 crore for a 16% share in Mother Sparsh. Mother Sparsh is a company that specializes in mother and baby care products in the luxury Ayurveda and natural personal care market. Mother Sparsh, a 2016 startup, generated Rs 33.52 crore in revenue in FY22.

ITC’s fund infusion is just part of a larger round of funding that Mother Sparsh is likely to close soon. The baby care company said that it is “in advanced discussions of securing Series B funding between INR 90-100 crore shortly.” Mother Sparsh is likely to use these funds to expand its current portfolio, which contains products like unscented baby wipes, anti-dandruff kits for kids, and plant-powered baby care products to name a few.

“Our recurrent funding aims to strengthen this mission through R&D in the space and offering a one-of-its-kind solution for the needs of mothers and their little ones,” said Himanshu Gandhi, Co-founder, and CEO, of Mother Sparsh. A bulk of Mother Sparsh’s business comes from online channels at this point and it is likely that offline exposure will increase with ITC’s incremental investment in the brand.

ITC’s growing presence in the direct-to-consumer market is consistent with the company’s plan to hasten the digital transition by creating FMCG brands that are mostly digital.

ITC acquired a 10% investment in Blupin Technologies, the parent company of Mylo, a new mom-and-baby startup, in April 2022. Moreover, ITC also maintains a website where it sells its brands of stationery, cleaning products, personal care products, and food products to consumers.

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