2013 is emerging as an year of Merger and Acquisitions. Atleast the past quarter reveals this trend. With around 7 major mergers and acquisitions such as Zovi and inkfruit, BookmyShow and Ticketgreen and many others, this can be another one in online space in India.
Bangalore based Hoopos, which retails baby care products online is likely to merge with Babyoye, a company operating in the same category reports NextBigWhat that a deal is likely to be announced in few days. The merger of two companies will be seen as an attempt to gain market leadership in baby care segment and compete directly with Firstcry.
BabyOye, has raised $2.5 million from Accel Partners and Tiger Global in 2011 after which it is presently shipping more than 600-800 orders on daily basis. The baby product segment was started with the entry of Firstcry and Babyoye in the Indian etail space and later on, segment witnessed rollout of Hoopos and Hushbabies including big etailers such as Snapdeal and Flipkart selling baby-care products.
The estimated online market for baby product hovers around INR 100-120 crore range Online baby-care market comprises of segments such as baby food, skin care, toiletries/ diapers, toys, gears and baby nursery. According to a leading VC, “In markets where the potential demand is huge and the barriers to entry are quite few, this is expected. There is no doubt that e-commerce has the potential to be a huge industry in India across segments including baby care, which has attracted entrepreneurs from all walks of life.”
The other deals in this segment include acquisition of Mangostreet.com in August 2012 by Hushbabies.