Baby products e-tailer Hushbabies.com has acquired Delhi based MangoStreet.com, an online retailer offering kid’s in a cash and stock deal. Details of the deal have not been disclosed yet.
Mangostreet (read our earlier coverage) was founded in November 2011 by Mohit Yadav and Rahul Yadav and was offering branded apparel for children between the age of 4-12 years (the founding team had earlier launched Scopial). Post acquisition the duo would be joining Hushbabies.com as vice presidents and would be chalking out the roadmap for retailing private labels for hushbabies. They are also slated to lead merchandising for Hushbabies.
Mohit Yadav, co-founder, Mangostreet said, “We have been looking for investment and acquisition both for quite some time and ultimately we have found compatible synergy with Hushbabies’s team”. There and hence there is a huge market for private labels, Mohit told Pluggd.in.
He said that initially the company would not come up with too many categories and a wide product lline. “We intend to launch 2-3 categories primarily for infant clothing and later on within time frame of 45-60 days, we will be adding more categories across infants, toddlers and kids.” he added.
Prior to acquisition, Mangostreet was closing 100-150 transactions per day with having traffic around 3,000 unique visitors on everyday basis.
Presently, Hushbabies caters only to infants, parents and to be parents segment. However, post this acquisition the company will dive dive into kids’ apparels category through private label. Additionally, till now none of the players operating in baby care product niche segment has forayed into private label and Hushbabies is hoping this to be a differentiator. Introduction of Private label also makes sense as it improves margins considerably as high as 35- 50 %.