East-West Digital News
In late August, Babadu.ru, an online children’s goods retailer, secured an investment of “a few million US dollars” from Target Ventures, a Russian fund that invests in the consumer goods industries.
The funds will be used to strengthen the company’s existing projects and launch new ones, so that the company can reach a “leading position” in its market segment.
“Children’s goods are among the most attractive segments in Russian e-commerce with high purchase frequency, customer loyalty, and good margins,” said Target Ventures’ managing partner Mikhail Lobanov.
The children’s goods segment is growing at a CAGR of 30-35% and is estimated to account for approximately 7% of Russia’s entire e-commerce sector.
In addition to its classic retail activity, Babadu.ru has developed a subscription-based offer for products, games, and educational materials as well as a sizeable editorial content base. The site was launched in 2009 in Saint Petersburg but now operates nationwide.
Among Babadu’s competitors are Esky.ru, which raised $6 million in March of this year, and BimBasket.ru, which secured a more modest $500,000 in February, as well as the online branch of leading offline player Detsky Mir. Babyboom.ru, a startup funded in 2011 by Western business angels, shut down last year.
Source: Unova.ru