Mahindra welcomes BabyOye.com on board, FirstCry raises $26 mn in 4th round
Parents in India may or may not be shopping for nappies online but sites selling babycare products continue to find new parents.
The latest to join this league is BabyOye.com which has just been acquired by Mahindra Group. The news came to light through a tweet from Group CMD Anand Mahindra, who had welcomed the site with these words, “And Baby Oye is now part of the Mahindra Group. Welcome!”
While financial details of the deal have not been disclosed, a Medianama report says the deal was confirmed to the site by an official spokesperson of Mahindra Partners, the emerging business arm of the Group.
According to a report on EconomicTimes.com, the trio of existing investors in Nest Childcare Services, which owns and runs BabyOye.com—Tiger Global, Accel Partners and Helion Venture Partners—are looking at the deal as an asset sale with no cash involved. This, says the ET report, “could mark the first major venture capital write-off in India's booming ecommerce sector.”
The three investors are said to have put in $14.5 million in the Mumbai-based e-com site over the past four years.
In a separate report in the same e-com sector, EconomicTimes.com has said that another Mumbai-based site, FirstCry.com, has received new funding of $26 million in a round led by the hedge fund Valiant Capital Partners. Also, the existing investors, IDG Ventures, Vertex Venture Holdings and SAIF Partners, participated in the round as well.
The baby care market in India is estimated to be worth $10 billion and a growing number of e-com start-ups as well as investors are looking to tap into the opportunity.
While the online babycare market is still nascent, signs of some consolidation are already beginning to appear. Apparently, like in many other sub-segments of the e-commerce space, most players are entering for big valuations and funding opportunities rather than grow and serve the market in the long run.