Fast-moving shopper items (FMCG) main ITC introduced on Friday that it’ll purchase 16 per cent stake in direct to shopper (D2C) model Mother Sparsh for Rs 20 crore. In a regulatory submitting to the inventory exchanges at the moment, ITC mentioned that it’ll spend money on the model with a concentrate on the ‘mom and child care’ phase, on a totally diluted foundation.
ITC has been focussing on the non-cigarette FMCG enterprise over the previous few years. “We believe that this investment provides an exciting opportunity which is in alignment with our aspiration to have a significant play both in the naturals and ayurvedic segment as well as in the D2C channel,” said Sameer Satpathy, Chief Executive, Personal Care Products Business, ITC.
Mother Sparsh plans to deploy the funds — raised in its Series A funding round– towards enhancement of its research and development initiatives, digital capabilities, and driving new product launches.
“ITC has been a frontrunner in growing a portfolio of vibrant FMCG manufacturers and has been making big strides on this area via concentrate on innovation and digitalization. We imagine that this partnership will present a singular synergy of strengths to construct our model additional,” mentioned Himanshu Gandhi, CEO, Mother Sparsh.
”The transfer assumes significance in wake of a multi-fold enhance within the web site gross sales clocked by the model over the previous few months. The firm at current registers over 85 per cent of its gross sales via on-line channels and has over the previous 12 months diversified its product portfolio by over 25 per cent,” mentioned Rishu Gandhi, Co-Founder, Mother Sparsh.
Mother Sparsh Baby Care Private Limited or ‘Mother Sparsh’ is a spread of child and mom care merchandise. ITI Capital acted as a monetary advisor to Mother Sparsh for the fund-raising course of.
On Friday, shares of ITC settled 3.18 per cent decrease at Rs 223.95 apiece on the BSE.