Mumbai: Baby products startup SuperBottoms is looking to raise about ₹130 crore from new and existing investors to diversify its offerings and target a wider age group, two people familiar with the matter told Mint.
“The round will be primary, and the company will use the proceeds to establish itself as a bottom-wear brand for kids,” one of the people said. “Existing investors such as Lok Capital are expected to double down on their investment, and newer investors will also come on board,” the person added.
The round is likely to close by the end of this year at a significantly higher valuation, they said, citing the company’s recent growth.
Read this | GrowX reaps a bonanza from space-tech firm Pixxel
The capital raise and repositioning underscore SuperBottoms’ shift from a niche cloth diaper maker to a broader kidswear and baby essentials brand, as India’s childcare market undergoes rapid growth and premiumization.
Currently focused on children aged 0–4 years, SuperBottoms plans to expand its product range to cover the 0–8 years age group. This move is expected to accelerate its path to ₹200 crore in revenue, the second person said.
The company could also turn profitable within the next two months, they added.
SuperBottoms and Lok Capital did not immediately respond to Mint’s requests for comment.
The funding effort comes nearly a year after SuperBottoms raised $1.14 million in an internal round in August from investors including DSG Consumer Partners and Saama Capital, according to data from market intelligence provider Tracxn.
Other backers include Lok Capital, Sharrp Ventures and Venture Catalysts. The company was last valued at about $22.5 million (around ₹200 crore) in June 2023.
In FY24, SuperBottoms reported revenue of ₹54.9 crore, up from ₹47.9 crore the previous year. It reduced its losses to ₹26 crore from ₹32.7 crore in FY23, according to Tracxn data.
The company competes with established diaper brands such as MamyPoko, Pampers and Johnson’s. It also faces competition from other cloth diaper makers like Charlie Banana and Mylo.
Founded in 2015 by Pallavi Utagi, SuperBottoms sells reusable cloth diapers, langots and nappies, as well as other baby essentials such as underwear, bibs, bottle covers, pillows, swaddles, nursing and feeding products, and diaper bags. Its products are built with a sustainability focus.
Also read | These startups are drawing investor interest amid a growing tribe of pet parents
India’s childcare products market is projected to grow from ₹2.5 trillion in 2022 to ₹4.8 trillion by 2027, according to a study by consultancy firm Redseer. The report estimates annualized growth at 14%, driven by changing lifestyles, a rise in nuclear families, and increased awareness of child wellness and development.