Sequoia-backed Chinese baby care startup lands $108m in series B round

Chinese baby brand Babycare announced it has raised 700 million yuan (US$108.4 million) in a series B round led by CDH Investments.

China Renaissance’s Huaxing Growth Capital and Sequoia Capital China also participated in the round.

Photo credit: Babycare

Founded in 2014, Babycare offers products for children between 1 and 6 years old, including diapers, baby appliances, cotton towels, bedding, infant costumes, and toys, among others. It aims to develop a one-stop brand in the mother and child market.

With the fresh funds, the company plans to develop its products, set up its lab, hire talent, and build its intelligent warehouse and automated logistics system.

With over 10 million registered users, the baby care brand claims that it achieved a gross merchandise volume of 5 billion yuan (US$774.3 million) last year. It also retained an over 100% compound annual growth rate within the last six years.

In 2019, the startup closed 300 million yuan (US$46.4 million) in investment from Sequoia Capital China.

The Chinese maternal and child care product industry reached around 2.7 trillion yuan (US$418.1 billion) in 2019, up by 15% in the past three years, according to Statista. The market is expected to see a steady growth in the next decade, which is largely attributed to online buying channels, as well as the increasing demand for high-quality products in the segment, according to China Daily.

Currency converted from Chinese yuan to US dollar: US$1 = 6.46 yuan.