CDH leads $108m Series B for China baby care brand

It follows a RMB300 million Series A - led by Sequoia - in August 2019, according to AVCJ Research's records.

Founded in 2014, Babycare has more than 10 million registered members and claims to serve 30 million families. Having made its name with an innovative baby carrier designed as a waist stool, the company expanded its coverage from babies to six-year-olds. The pan-maternal and baby product matrix includes diapers, toddler clothing and toys, infant foods, and educational tools.

Babycare has maintained a compound annual growth rate of more than 100% over the past six years, achieving sales of RMB5 billion in 2020. In last year's Single’s Day shopping festival, it ranked first in the maternal and infant product category with RMB900 million in sales.

“What impresses us most is Babycare’s long-term commitment to high-quality and safe products that users can trust. They have maintained high standards in terms of production and supply chain controls. The long-term value-oriented management approach suggests it has the makings of a great consumer goods company,” said Xiaoling Hu, a founding partner at CDH.

Huaxing invests heavily in new retail, with Fan Bao, the firm's founding partner, noting that this conviction comes from a strong understanding of younger Chinese customers. The new generation of parents wants one-stop-shopping solutions and Babycare’s full-category strategy caters to this trend.

Parents also have higher expectations in terms of product appearance and functionality, Bao added. E-commerce enables emerging domestic brands with a good product-market fit to expand rapidly and overtake traditional players.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Greater China
• Consumer
• Early-stage
• China
• e-commerce
• CDH Investments Management
• Sequoia Capital
• China Renaissance
• TMT