Baby products focused e-commerce venture Babyoye.com has acquired Bangalore-based Hoopos in an all stock deal, reports The Economic Times. The report also claims that the two entities would merge following the deal and that the merged entity has raised $12 million (Rs 64.8 crore) in funding from Helion Venture Partners, Accel Partners and Tiger Global. The merger was first reported by Nextbigwhat.
In December 2011, Bollywood actress Karishma Kapoor had invested an undisclosed amount in BabyOye, following which she had become the largest individual shareholder in the company. In April 2011, the company had raised an initial funding round of $2.5 million from Accel Partners and Tiger Global. In the same year Hoopos had raised an undisclosed amount of funding from Helion Advisors.
Interestingly, while the companies did not have any common investors initially, it should be noted that the new merged entity has raised funding from Helion Venture Partners, an investor in Hoopos. This merger too seems like an investor driven merger/acquisition. According to the report, BabyOye does not plan to shut down Hoopos and has indicated that Hoopos could be turned into a niche site retailing products for older children.
Launched in 2010, Babyoye.com is one of the few babycare products focused e-commerce ventures in India with other players being Hushbabies.com and Firstcry.com. The company claims to offer over 13,000 Indian and imported baby products across categories, like diapers, bath and skincare, health and safety products and over 120 brands like Johnson & Johnson, Hauck, Graco, Medela, Avent, Chicco, Fisherprice, farlin, Pampers, and Huggies.
In August 2012, Hushbabies.com, a baby care product company which is run by Lapis Marketing Pvt Ltd, has acquired MangoStreet.com, an eStore for kids’ products. It had Shutdown MangoStreet after the acquisition. HushBabies had also taken over BabyBox.in, an information portal for parents.