ITC LTd. has increased its stake in baby and mother care brand Mother Sparsh to 22% for an estimated ₹13.50 crore, according to a regulatory filing by the company.
“This has reference to our letters dated 26th November, 2021, 18th December, 2021 and 15th March, 2022 in connection with acquisition of 16% of the share capital of Mother Sparsh (on a fully diluted basis). We write to advise that the company today has entered into an agreement to acquire further 1000 compulsorily convertible preference shares of ₹10 each of Mother Sparsh. The said shares, once acquired, will take the Company’s shareholding in Mother Sparsh to 22% (on a fully diluted basis),” ITC said in its filing late on Tuesday.
The said acquisition is in line with the company’s continued interest in the fast-growing direct-to-consumer (D2C) space in the personal care category.
Mother Sparsh is an ayurvedic and natural personal care start-up with focus on mother and baby care segments.
In November 2021, ITC had made its maiden investment in a direct-to-consumer (D2C) brand after it picked up a 16% stake in Mother Sparsh for ₹20 crore. The acquisition is in line with the ITC Next strategy that will see the company develop more digital-first fast moving consumer goods (FMCG) brands, the company had then said.
Mother Sparsh sells products such as biodegradable wipes as well as plant-powered range of personal care products for babies.
In a separate statement on Wednesday, Mother Sparsh said it was in “advanced discussions” to raise ₹90 to ₹100 crore in Series B funding. Mother Sparsh will invest in enhancing research and development as well as step up innovation in the baby and mom care segment.
“An intrinsic innovative streak as a brand and the ethos of crafting products on need-based proposition by the virtue of nature-oriented solutions is at the heart of Mother Sparsh. Our recurrent funding aims to strengthen this mission through R&D in the space and offering one-of-its-kind solutions for needs of mothers and their little ones,” Himanshu, co-founder and CEO, Mother Sparsh, said.
