Mahindra Partners, the emerging
business arm of the diversified conglomerate Mahindra Group is in talks to
acquire online portal BabyOye. The acquisition is likely to be made through
Mahindra Retail. Mahindra already runs a chain of baby-care stores i.e. Mom
& Me.
BabyOye is a four-year-old portal
founded by Nadkarni and his wife and is backed by Accel Partners, Helion
Venture Partners, and Tiger Global Management. The three investors have infused
Rs 90 Crore into the venture. The portal selling diapers, kid’s apparel, toys,
and maternity care products had clocked a GMV of Rs 5 Crore last month and expect
to hit annual revenues of Rs 250 Crore by 2015.
In terms of hybrid presence,
another player FirstCry leads BabyOye; it has tied up with 500 brands and is
currently offering over 70,000 products. It has 50 branded franchise stores
across 45 cities and expects to grow this network to 100 stores. This year it
raised $15 Million in series C round funding. First cry’s investors include
Vertex Venture Management, IDG Ventures India, and Saif Partners.
The recent deals in this space
were, online baby products store Hopscotch had acquired school supplier
e-tailer SkoolShop. Kids wear manufacturer Indian clothing league had raised Rs
50 crore in first round of funding from ASK Pravi PE Opportunities Fund. FirstCry,
an online portal for baby products was raising $15 Million from Singaporean
sovereign fund Vertex venture holding.
The domestic baby and children care
products market, which includes apparel, footwear, toys, and baby cosmetics, is
growing in sync with the retail industry growth, and is estimated to grow at a
CAGR of around 17% during 2012-2017% to $26.2 Billion from $11.8 Billion in
2012. Market size for baby, kids, and maternity products is estimated at INR
40,000 Crore annually growing at 15-20% a year.
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