Rainforest doubles down on parenting brands as revenue flattens

From left: Rainforest co-founders Per-Ola Röst, JJ Chai, and Jason Tan / Photo credit: Rainforest

Rainforest, a Singapore-based ecommerce roll-up firm, posted a slight decline in revenue for 2024, according to its most recent set of audited financials.

Revenue stood at US$54.1 million for the year, compared to US$54.7 million in 2023.

The company also reported a 16% drop in administrative expenses, from US$9.7 million in 2023 to US$8.1 million in 2024.

While this indicates operational efficiency, a double-digit cut in administrative spending could also signal belt-tightening amid slow growth and capital constraints.

Donald Trump’s tariff hikes, rising marketplace fees from platforms like Amazon, and sluggish consumer demand have taken a toll on ecommerce aggregators like Rainforest, which rely heavily on Amazon sales in the US market.

To improve its financial position, Rainforest reduced its loan exposure by US$16 million in 2024.

Bright spot

Amid a broader slowdown, Rainforest’s parenting and kids portfolio stood out as a growth engine.

The segment saw a 25% year-on-year increase in net revenue and a 19% rise in gross profit. New products under the category, including the Babbleroo vegan leather diaper backpack, contributed US$5.3 million to the company’s overall net revenue.

Rainforest founder JJ Chai previously told Tech in Asia that the mother and babycare category is more resilient than other direct-to-consumer segments. He noted that demand in the category tends to hold steady despite macroeconomic pressures because these are essential products for families.

The bet may be well-placed. Southeast Asia’s babycare market is projected to generate US$421 million in revenue in 2025, while the US baby diapers market brought in almost US$8 billion in revenue last year.

To sharpen its focus, Rainforest has begun divesting non-core brands and product lines, shifting capital and resources into the parenting vertical. The firm has also hired a new head of brand and creative to help scale product innovation.

See also: As tariffs bite, ecommerce roll-up firms get creative