Mahindra to merge online business of Mom & Me and Babyoye

While continuing with its retail expansion strategy for Mom & Me brand by opening more physical stores across the country, Mahindra Retail, which acquired Babyoye.com last month, plans to consolidate its e-commerce business into a single platform under Babyoye.

In August last year, Mahindra brought in Prakash Wakankar from its private equity arm Mahindra Partners to replace K Venkataraman as the Chief Executive Officer (CEO) of the company. After launching its retail arm in 2009, Mahindra Retail carried out rapid retail expansion opening over 140 stores but realized that the demand was not as strong as the company expected. However, after taking over Babyoye, the company plans to open 50 stores on Mom & Me next fiscal while integrating brand’s e-commerce venture with Babyoye.com

Babyoye set up by Sanjay Nadkarni and his wife Arunima Singhdeo four years ago, has got funding amounting to Rs 90 crores from Accel Partners, Helion Venture Partners and Tiger Global Management. The company took over rival portal Hoopos in an all-stock deal in April 2013. The portal sells products such as diapers, kid's apparel, toys and maternity care products.