Chennai-based baby-care start-up Baby Amore has raised an undisclosed external funding from GetVantage, a revenue-based financing fintech platform and marketplace.
Revenue-based financing refers to the practice of raising funds on the basis of ongoing revenues of the company. It is a loan that can be repaid by pledging a part of the borrower entity’s revenues.
Founded in 2019 by Hameed Imthad and Abdul Wahab, Baby Amore provides eco-friendly, organic, and sustainable baby products that are safe for new-borns and toddlers and also the environment.
The company sells over 100 brands and 2,000 SKUs through its e-commerce store and has 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 a better brand-building strategy. The company aims to expand its concept stores to more metro cities and rope in international brands on its e-commerce platform.
“As a millennial parent, I found myself being more cautious of the products I chose for my babies but recognised the gap in the availability of sustainable and safe baby care products. That's how Baby Amore was born,” said Imthad.
“After being a digital-first brand for over two years, we decided to expand our channels to provide a concept-driven experience to our customers,” added co-founder Wahab.
In the first year of operations, the company achieved a sale of 30,000 products. In 2021, the company clocked a revenue of Rs 3.5 crore, up 70 per cent growth from the previous year. With the baby care industry poised to grow exponentially over the next five years, the start-up is expecting to achieve a revenue of Rs 40 crore by 2025 and have a chain of 50 concept stores.
According to a report by ResearchAndMarkets.com last year, the baby care products market in India will touch $26.35 billion by 2025, growing at an 11 per cent CAGR on the back of an increase in internet penetration and online availability of baby care products and the growing number of nuclear and single-parent families.
“We are constantly looking for brands and businesses that are working on a niche market and unique ideas. Baby care is one such industry with several white spaces that needs attention. With rising nuclear families and working parents, it becomes crucial and essential for parents to ensure that their kids are safe,” says Bhavik Vasa, co-founder & CEO of GetVantage.
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