Chennai-based baby care startup Baby Amore has raised undisclosed external funding from GetVantage, a revenue-based finance fintech platform and marketplace.
Revenue-based financing refers to the practice of raising funds based on current business revenues. It is a loan that can be repaid by pledging part of the income of the borrowing entity.
Founded in 2019 by Hameed Imthad and Abdul Wahab, Baby Amore offers eco-friendly, organic and sustainable baby products that are safe for newborns and toddlers, as well as the environment.
The company sells over 100 brands and 2,000 SKUs through its online store and recently opened its first concept store in Chennai.
With the latest round of funding, the company plans to expand its business by providing an omnichannel shopping experience and better brand building strategy. The company aims to expand its concept stores to more metropolitan cities and integrate international brands into its e-commerce platform.
“As a millennial parent, I found myself being more careful with the products I chose for my babies, but recognized the gap in the availability of long-lasting and safe baby care products. That’s how Baby Amore was born,” Imthad said.
“After being a digital-first brand for over two years, we decided to expand our channels to deliver a concept-driven experience for our customers,” added co-founder Wahab.
During the first year of operation, the company achieved a sale of 30,000 products. In 2021, the company recorded revenue of Rs 3.5 crore, up 70% from the previous year. As the baby care industry is set to grow exponentially over the next five years, the start-up expects to achieve revenue of Rs 40 crore by 2025 and have of a chain of 50 concept stores.
According to a report by ResearchAndMarkets.com last year, the baby care products market in India will reach $26.35 billion by 2025, growing at a CAGR of 11% driven by increased penetration of the Internet and the online availability of baby care products and the growing number of nuclear and single-parent families.
“We are constantly on the lookout for brands and companies that work in a niche market and unique ideas. Baby care is one such industry with several white spaces that need attention. With the rise of nuclear families and working parents, it becomes crucial and essential for parents to ensure their children are safe,” says Bhavik Vasa, Co-Founder and CEO of GetVantage.
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