Babyoye acquires Hoopos, raises more funds

Online babycare company Babyoye has raised 12 million dollars

(around Rs 64.8 crores) in funding from Helion Venture Partners along with Accel Partners and Tiger Global, with this it has also confirmed the acquisition of Hoopos in an all-stock deal. While the Hoopos website will continue to function, Babyoye will be the primary platform. As Sanjay Nadkarni, CEO, Babyoye says, with a large number of e-commerce sites offering babycare products, the consolidation between both the sites was inevitable as the market has space only for two or three players. There have been a spate of mergers and acquisitions in the ecommerce industry as high operating costs and regulatory issues take their toll.

The new entity is targeting Rs 250 crores in revenue in two years. In 2011, both Babyoye and Hoopos had raised funds. While Babyoye had raised 2.5 million dollars (Rs 13 crores) from Accel and Tiger, Hoopos had raised an undisclosed amount of money from Helion.