Baby & kids products focused flash sales site Hopscotch has raised $11 million investment led by Facebook co-founder Eduardo Saverin’s PE firm Velos Capital Partners and participation from Rise Capital, Jabbar Internet Group and existing investors LionRock Capital and Skype co-founder Tovio Annus, reports The Economic Times.
Hopscotch founder and CEO Rahul Anand told the publication that they intend to use this investment to add more product categories, increase its marketing efforts and build out its senior management team.
Prior to this, Hopscotch had raised $2 million from LionRock Capital, Skype co-founder Tovio Annus, Diapers co-founder & CTO Wei Yan and Adi Godrej’s younger daughter Nisa Godrej in February last year. Anand told ET that they have raised a total $15 million to date.
The company offers products like baby and kids apparel, shoes, toys & books, school products, moms & maternity products and accessories from various brands in a flash sales model. HopScotch had also acquired Mumbai-based online school & educational supplies store SkoolShop for an undisclosed amount in May last year. Hopscotch had then said that this acquisition will enable them to increase its user base and its vendor base.
Recent developments in online baby product segment
This investment comes at a time when baby e-tailers have either changed or exploring different business models. FirstCry has started focusing on its offline foray after raising $15 million from Vertex Venture Holdings, SAIF Partners and IDG Ventures in January last year. It had claimed to have setup 100 offline stores as of November last year. FirstCry had also tied-up with around 500 maternity and general hospitals in Bangalore for its gift box initiative wherein it provides a box containing diapers, lotions and baby wipes among others to a new mother right after she delivers.
This initiative is quite identical to what Lapis Marketing-operated BabyBox.in offers. Note that Lapis Marketing had shifted focus to BabyBox after shutting the e-commerce venture Hushbabies in October 2013.
ET says that Mahindra Retail, which operates the online store momandmeshop.in along with the retail chain Mom & Me, is also in final stages of acquiring Accel and Tiger Global-backed BabyOye. Babyoye.com had acquired Hoopos in April 2013 and the merged entity had raised $12 million from Helion Venture Partners, Accel Partners and Tiger Global.