InvestorQ : What is the business logic of ITC buying a stake in Mother Sparsh Baby Care?
Rashi Mehra made post

What is the business logic of ITC buying a stake in Mother Sparsh Baby Care?

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Archita Jajjoo answered.
6 months ago
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ITC will invest in Mother Sparsh Baby Care Private Limited, which is a premium ayurvedic and natural personal care brand in the direct-to-consumer or D2C space. The focus of this brand is largely on the mother and baby care segment. Its baby and mother care products leverage on the ancient wisdom and knowledge of Ayurveda. ITC will pick up a 16% stake in Mother Sparsh on a fully diluted basis.

Mother Sparsh will be raising Rs 20 crore in Series-A funding from ITC. Mother Sparsh will deploy the funds towards enhancement of its R&D capabilities, digital capabilities, new launches and lateral expansion. With this association, Mother Sparsh expects to scale-up revenues to Rs 300 crore in 3-5 years. Mother Sparsh was founded by Himanshu Gandhi and Rishu Gandhi, and offers a niche diversification for ITC.

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