BabyOye, a startup in online babycare product has raised $2.5 million from Accel Partners and Tiger Global [ funds that earlier co-invested $6million in LetsBuy].
Started by a couple, Sanjay and Arunima, BabyOye boasts of 80 brands/4,000 products and will use the funding to hire/expand supply chain/warehouses and increase the product range.
If you look at it, most of the ecommerce startups in India started with a niche, raised VC money and are now chasing (or being forced to?) the valuation game (with no tab on margin).
Considering the huffing and puffing Indian VCs are doing for ecommerce (which doesn’t mean much for their success really – except that fund raising is easier) – this is a good time to get good valuation if you have decent revenues. [from an earlier story]
We certainly hope this nascent category doesn’t meet the same fate, as these startups do solve a market problem.
» Related Startups: FirstCry and Kidloo.
» Recommended Read: Ecommerce Investments in India – Are VCs Hedging Risk?
[Thanks Dhruv for the tip.]