Hopscotch raises $13 million in Series C funding, led by Facebook Co-founder Eduardo Saverin
Mumbai-based kidswear portal Hopscotch has secured $13 million in a Series C funding, led by Facebook Co-Founder Eduardo Saverin. In January last year, it had raised $11 million in a Series B investment round led by Facebook Co-founder Eduardo Saverin and Velos Partners.
Launched in October 2012 by Rahul Anand and Lisa Kennedy, Hopscotch is a discovery-based e-commerce platform offering a wide range of curated children’s merchandise. Currently, it claims to have over 3,000 local and international brands across multiple product categories including apparel, shoes, toys and accessories.
The platform says that the investment will not only further encourage the company’s expansion plans, but also intensify Eduardo Saverin's involvement in its growth trajectory. Following the round, the Saverin Family Office will join the Hopscotch board and work closely with the management team.
“Now as a Board member, Eduardo will work in tandem with us and we’ll continue providing the Indian market with the best of products. With invaluable insights and experience, it is reassuring to have him as an investor. This announcement marks a new milestone in Hopscotch’s journey,’’ says Rahul Anand, Founder and CEO, Hopscotch. He adds that the platform is growing at 700 per cent year-on-year in terms of revenue.
Eduardo Saverin says, “I am very excited to support the team with this investment, and continue to be closely involved with building the company’s vision and strategy. Hopscotch is taking a customer focused approach and as a result seeing record high customer retention. I believe that if they continue serving moms with an exceptional selection, coupled with a delightful tailor-made experience, Hopscotch will become the destination for moms in India.’’
As per a study by retail advisory Technopak, kidswear's sharein the Indian apparel market is expected to increase to 22 per cent by 2023.
FirstCry, Babyoye, Mom & Me, Kidology and many other kids-focused apparel companies are vying with each other in the segment. Last year, baby products retailer FirstCry raised $36 million in fourth round of funding, taking its total fundraising to nearly $70 million. In February 2015, Mahindra Group acquired VC-backed baby products e-tailer Babyoye. Recently, Saurabh Mittal, Co-founder and former Vice Chairman of Indiabulls, invested in Kidology.
However, amidst all the funding, the kidswear segment has also witnessed some setbacks. Many brands such as Lilliput Kidswear and Gini and Jony shut most of their stores over the past few years after suffering huge losses.
E-commerce websites and brands need to build brand affinity and loyalty among consumers. With the funding raised, startups should now focus on brand building and finding a niche for themselves in this massive market.