ITC hikes stake in Mother Sparsh

Premium newborn and mother care business Mother Sparsh acquired additional investment from ITC. The business reported that it is far along in its plans to raise INR 90–100 crore in a Series B fundraising round.

ITC, a large FMCG company and an existing investor, will contribute around INR 13.5 crore as part of this cash raise. The money will be used to increase the company's baby skincare and mother-focused product offerings.

ITC announced in a BSE filing that it is increasing its investment in Mother Sparsh from its present 16% to 22%. The business said that it has "entered into an agreement to buy additional 1,000 Mother Sparsh Compulsorily Convertible Preference Shares of USD 10 apiece." After the aforementioned acquisition is complete, the company will own 22% of Mother Sparsh's share capital (on a fully diluted basis).

Additionally, this investment is consistent with the company's ongoing focus in the rapidly expanding direct-to-consumer (D2C) market in the "personal care" area, it was stated.

The goal of the Series B fundraising round, according to Mother Sparsh Co-Founder and CEO Himanshu Gandhi, is to strengthen R&D and stimulate innovation in the crucial infant and mom care area while also maintaining product portfolio diversification. Recently, the company introduced cloth diapers made of plants.

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