You’re reading it here first: MediaNama has learnt from reliable sources that Baby products focused e-commerce venture Babyoye.com has raised $2.5 million in a funding round led by Accel Partners, with participation from Tiger Global. Prashant Prakash of Accel Partners confirmed the investment to MediaNama, adding that the company will use the funds to build warehousing and sourcing relationships, and investment in technology.
BabyOye is one of the few babycare products focused e-commerce ventures in India, along with Hushbabies.com and Firstcry.com. Jasper, the consumer marketing company that owns Snapdeal has also launched Babybox.in. BabyOye retails Indian and imported baby products across categories, like diapers, bath and skincare, health and safety products. It has tie-ups with brands like Johnson & Johnson, Hauck, Graco, Medela, Avent, Chicco, Fisherprice, farlin, Pampers, and Huggies and offers delivery only in India, although it lets users pay in US dollar. The site offers free home delivery for orders above Rs 2,000.
Another E-commerce Funding From Accel
Accel Partners is invested in multiple e-Commerce sites in India, including FlipKart, Exclusively.in, Myntra and Lets Buy. So why another e-commerce funding? Prakash believes that the segment is expanding, and all the companies in Accel’s portfolio have witnessed pent up demand, which is not just limited to metros. The sites essentially target a market of 25-33 year old upwardly mobile market consumers, and Prakash believes that e-commerce in India has just captured around 20-25% of the base.
According to Prakash, the baby care segment is green-field, and there isn’t significant organized retail targeting of babycare products, unlike in case of electronics, where there is a reasonable set of well entrenched players.
But how has Accel invested in a multi-brand retail entity, when Foreign Direct Investment in the segment is still not allowed? Prakash says that they’ve invested in the B2B wholesaling entity which supplies to BabyOye.