Mom & me merging with e-tailer Babyoye



Mom & me merging with e-tailer Babyoye. As we are aware Mahindra Retail have acquired specialised e commerce Babyoye recently. Now Mahindra Retail plans to go further with clear segregation of their business in this segment. Off line stores will be Mom & me and Babyoye for online presence.

Babyoye was founded in 2010 by Sanjay Nadkarni and his wife Arunima Singhdeo. They had reported revenues of Rs.29.8 crores in 2014 compared to Rs 18 crores in 2013. At the same time losses also increased from Rs. 10.5 crores to Rs. 15.1 crores.

Babyoye had raised undisclosed amount from Bollywood Actress Karisma Kapoor in 2011. They got venture funding of $2.5 million from Accel Partners and Tiger Global Management. In 2013 Babyoye acquired rival portal Hoopos in all stock deal. Babyoye concentrates on selling diapers, kid’s apparel, toys and maternity care products.


On the other hand, Mahindra Retail operates over 100 Mom & Me and Beanstalk stores in various locations. They had generated revenues of Rs. 206 cr and loss of Rs. 114 cr for the year ending 2014.
There are several factors for Babyoye to merge with Mom & Me. One of them is their rival FirstCry, largest player in this segment has expanded offline presence to 100 stores. Dedicated portals like Babyoye are feeling heat of deep discounting offered by Flipkart, Snapdeal and Amazon. Apart from these the offline stores that offer ease of shopping. It makes sense for Babyoye to merge with much bigger retailer.

Mom & Me and Babyoye are operating in same vertical where they provide baby and maternity products keeping in mind of parents as targeted audience. For Mom & Me it makes sense by acquiring Babyoye. Their online presence is very minimal.

On the whole baby care market is worth $12 billion and growing at rapid phase of 17% per year. By end of 2017 the market will double its worth $ 26.2 billion. At the same time, Mahindra want to be dominant player in the market.