Belgian investment fund Sofina is at an advanced stage of negotiations to lead new funding round in personal care brand Mamaearth, according to two people in the know of the matter. The fresh infusion of capital will likely value the direct-to-consumer (D2C) brand at about $700 million from around $200 million in 2020, indicating continued investor interest in D2C brands overall. D2C brands have gained amid the Covid-19 pandemic as shoppers increasingly purchase online.

The financing round is expected to be in the range of $60-$80 million, with a primary component of around $50 million. Sofina is believed to have already picked up a stake in Mamaearth through a secondary share sale, a process where the money does not flow into the company directly but goes to investors selling their stakes.

“There has been a recent secondary sale including from their staff as well as from Sofina which has picked up a stake. Sofina is now leading the round which will be finalized by this month,” one of the people said on condition of anonymity. Private equity firm Kedaara Capital had also held talks with Mamaearth, but it was not immediately clear whether it would participate in the new round, said two people in the know.