SUMMARY
DFC invested INR 55 Cr while existing investors A91, Symphony, Sixth Sense and Gulf Islamic Investments (GII) pumped in the rest of the amount
The startup will use the funding to grow distribution channels and deepen reach across Tier-II and Tier-III markets
Founded in 2012, Soothe Healthcare offers a range of products including sanitary pads, intimate washes and menstrual cups
Personal hygiene D2C brand Soothe Healthcare has raised INR 175 Cr ($21 Mn) as part of a strategic funding round from the US International Development Finance Corporation (DFC) and other existing investors.
DFC invested INR 55 Cr while the remaining amount was raised from A91 Partners, Symphony Ventures, Sixth Sense Ventures and Gulf Islamic Investments (GII).
The startup will use the funding to further grow its distribution channels and deepen its reach across Tier-II and Tier-III markets. The investment will also be deployed to shore up marketing outreach and brand awareness initiatives.
Founded in 2012 by Sahil Dharia, Soothe Healthcare offers a range of products targeted at feminine hygiene including its flagship product sanitary napkins, intimate washes and menstrual cups. At the outset, it sold sanitary pads under the ‘Paree’ brand and then later also ventured into the kids and adult diaper segment.
“…Our endeavour is to provide women with high quality products at a great value. Our value proposition and social impact-driven business model has helped establish Paree Sanitary Pads as a trusted personal hygiene brand across India. This fresh inflow of funds will help us reach women across wider geographies,” said Soothe Healthcare chief executive officer (CEO) and founder Sahil Dharia.
Echoing the sentiment, general partner at A91 partners, Abhay Panday, said, “We continue to be believers in the business opportunity in women’s hygiene and Soothe’s relentless focus on building a high-quality Indian brand in the space.”
The startup claims to have raised INR 230 Cr in funding last year, including a INR 130 Cr in Series C round from A91 Partners in August. Since then, the startup claims to have doubled its manufacturing capabilities and has added new product verticals.
Soothe Healthcare also manufactures and markets personal hygiene products for women, senior citizens and infants alike.
In the women’s sanitary pads market, Soothe competes with a swathe of global and homegrown giants such as P&G, Johnson & Johnson, Emami, Mankind and others. In the overall women’s personal hygiene section, it competes with startups such as Sirona, Nua and Seeders-backed Sanfe.
In FY21, Soothe reported an operating revenue of INR 79.04 Cr, up 145% from INR 32.33 Cr in FY20. While its losses remained steady at INR 35 Cr in both fiscal years, however, expenses shot up more than 70% to INR 114.23 Cr in FY21 versus INR 67.14 Cr in FY20.
The mega funding announcement comes at a time when the D2C personal hygiene space appears to have somewhat lost its sheen. While there have been very few notable deals in this segment, the overarching D2C sector has been witnessing big deals and new announcements.
Earlier this week, FMCG major ITC picked up an additional 6% stake in the baby and mother care D2C startup Mother Sparsh for an undisclosed amount. Hyderabad-based D2C wellness startup Good Health Company also raised $10 Mn in its Series A round led by Left Lane Capital in October. In February, Good Glamm Group-backed feminine hygiene startup Sirona also forayed into the women’s safety segment with the acquisition of IMPOWER.
According to a report, the Indian sanitary napkin market was pegged at $618.4 Mn in 2021 and was projected to reach $1.18 Bn by 2027.
