Soothe Healthcare Raises ₹175 Cr from US DFC and Existing Investors

(L-R) - DFC CEO, Scott Nathan and Soothe Healthcare CEO & Founder, Sahil Dharia signing the letter of agreement

Funds to be used for marketing, deepening distribution channels & working capital

Soothe Healthcare, India’s fastest growing personal hygiene company and makers of Paree Sanitary Pads, today announced a fresh round of funding of ₹ 120 crores from its existing investors and another ₹ 55 crores from the U.S. International Development Finance Corporation (DFC). The existing partners include A91, Symphony, Sixth Sense, and GII.

The brand will utilize the raised capital to further grow its distribution channels and deepen its reach to women across tier II & III markets. The funds will also be used to amplify marketing outreach and spread a wider social message on women's menstrual hygiene. This is in line with DFC’s Global Health and Prosperity Initiative and 2X Women’s Initiative, through which DFC seeks to empower women and help them achieve the economic tools to prioritise their health and hygiene needs.

The association between DFC and Soothe Healthcare was facilitated by Intellecap, the exclusive transaction advisor.

Commenting on the funding, Sahil Dharia, Founder & CEO, Soothe Healthcare, said, " Raising a meaningful amount from existing partners and US Govt. DFC validates our brand's commitment to prioritise menstrual hygiene access, product, people, and communities. 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.”

Abhay Panday, General Partner, A91 Partners commented, “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.”

Paree Sanitary Pads was launched in 2016 through offline FMCG distribution channels. The young brand has since then raised several rounds of investments from multiple companies. Further to the 230 Cr. funding raised by the brand last year, the brand had been breaking new grounds in terms of product innovations, expanding the business in the international markets, adding new product verticals, and doubling its manufacturing capabilities.

About Soothe Healthcare

Soothe Healthcare, a Spirit of Manufacturing Award-winning company, is engaged in manufacturing, distributing, and marketing personal hygiene products under its flagship brand Paree sanitary pads. It has now expanded into the baby diapers segment with the launch of its brand Super Cute's.

Soothe is a research-focused company with customer-centricity at its core is committed to product innovation that addresses the real needs of our consumers and makes a difference in their lives. The vision is to positively impact the health, hygiene, and wellness of the community that we are a part of.

About DFC

U.S. International Development Finance Corporation (DFC) partners with the private sector to finance solutions to the most critical challenges facing the developing world today. It invests across sectors including energy, healthcare, critical infrastructure, and technology. DFC also provides financing for small businesses and women entrepreneurs in order to create jobs in emerging markets. DFC investments adhere to high standards and respect the environment, human rights, and worker rights.

Dairy Foods Startup Milk Mantra Raises $10 Mn in Structured Debt Financing from US DFC

Dairy foods company Milk Mantra on Friday said US International Development Finance Corporation (DFC) has committed USD 10 million (over Rs 76 crore) for structured debt financing to the company.

DFC has also approved USD 3,71,000 (about Rs 2.8 crore) in technical assistance to support the company's agriculture extension services and ethical milk sourcing programme, according to a statement.

"The main focus of this would be to build out Milk Mantra's digital financial services platform for its network of farmers. This platform will drive financial inclusion for farmers, especially women farmers," it added.

There are nearly 100 million dairy farmers in India with a significant proportion being women.

The company was founded in August 2009 by the former director of Tetley, Srikumar Misra, along with Rashima Misra and started operations in 2012. Its milk sourcing network has grown to over 60,000 farmers. The company said it has scaled its revenue from USD 2 million in 2012-13 to USD 32 million in 2019-20, and reaches more than 3 lakh households daily. The company operates in Odisha, West Bengal and Jharkhand.

Milk Mantra has raised USD 25 million in venture capital funding over four rounds from investors like Eight Roads (previously Fidelity Growth Partners), Neev Fund, and Aavishkar VC.

"At Milk Mantra, we align with DFC's focus on development impact. We have developed an ethical sourcing model that looks to revitalise rural economies, increase farmers' yields, and provide farmers, their families, and their communities with growth opportunities while we scale up a mass-premium food brand that's nourishing the lives of consumer families," Milk Mantra founder Srikumar Misra said.

Start-ups that are able to reach a stage of sustainable cash flow and EBITDA (earnings before interest, tax, depreciation and amortisation) will have the ability to access not just equity funding, but also different layers of debt funding, Misra added.

"In these challenging times when debt liquidity in India is almost at a freeze, for a premium foods consumer start-up like Milk Mantra, to raise a substantial debt in the form of external commercial borrowing is noteworthy. This leverage will in fact conversely enable the company to raise large amounts of equity capital to fund its inorganic growth plans further down the line," Misra said.

Setuka Partners LLP based out of Washington DC, led by Aman Khanna, was the exclusive advisor to this transaction.

India's organised milk market is slated to reach USD 10 billion by 2025, and private dairies are expected to play a central role. PTI SR