Online babycare company Babyoye has raised $12 million (INR 64.8 crore) in a funding from Helion Venture Partners along with Accel Partners and Tiger Global, with this it has also confirmed the acquisition of Hoopos in an all stock deal.
Sanjay Nadkarni, CEO, Babyoye said that there was a lot of synergy amongst the senior managements of both companies so this is akin to a merger. With a large number of ecommerce sites offering babycare products, he said that consolidation was inevitable as the market has space only for two or three players. There have been a spate of mergers and acquisitions in the ecommerce industry as high operating costs and regulatory issues take their toll.
BabyOye will be the primary platform but the company will not discontinue the Hoopos website, the portal may be turned into a niche site retailing products for older children. The new entity is targeting Rs 250 crore in revenue in 2 years.
In 2011, both BabyOye and Hoopos has raised funds, BabyOye had raised $2.5 million from Accel and Tiger in 2011 whereas Hoopos had raised an undisclosed amount of money from Helion.