Babyoye, a Mumbai based online babycare company has acquired its competitor Bangalore-based Hoopos.com. While Babyoye is backed by private equity players such as Accel Partners and Tiger Global, Hoopos has investments from Helion Venture Partners. The merged entity has also raised funding of $12 million (Rs 64.8 crore) led by Helion Venture Partners with participation from Accel Partners and Tiger Global.
Following the acquisition, BabyOye will be the primary platform but the company is not discontinuing the Hoopos site. According to Sanjay Nadkarni, CEO of BabyOye, the portal could be turned into a niche site retailing products for older children. He further added that the new entity is targeting about Rs 250 crore in revenue in two years, by when the online babycare market should reach Rs 650 crore.
Hoopos.com which started in 2011, has already been able to get about 4,000 orders per day with an average ticket size of Rs 1,200. Over the last few months, there’s been a spate of mergers and acquisitions in the online retail space. Last year baby care products e-tailer Hushbabies.com acquired MangoStreet.com, another online store for kids, for an undisclosed amount.