Babydash raises US$300k bridge via ECF, positioned for regional expansion
By Digital News Asia July 15, 2021
- Funds to go into strengthening market lead in Malaysia, growing into Singapore
- Trusted one-shop destination, provides largest range of genuine, curated, items
Malaysia’s leading digital baby store today announced that it has successfully raised US$300,000 (RM1.27 million) via equity crowdfunding (ECF). Describing this as a bridge funding round, Babydash says it is a prelude to future fundraising rounds with institutional investors and VCs.
Repeating what happened in its first ECF round, when it raised US$477,000 (RM2 million) in mid-2017, the popular e-commerce site again received strong community interest, with the majority being its users and part of its parenting community. That funding proved to be the springboard to grow revenues at an average growth rate of 46% year-on-year.
[Ed: Para updated with additional information.]
Having raised capital quickly, they are now doubling down on key targeted activities to aggressively expand the customer and product base. They aim to drive up revenue per transaction while expanding their footprint in ASEAN leading towards the goal of doubling the size of the company in the next 12-18 months.
This raise also saw the participation of the Malaysian Government via the Malaysia Co-Investment Fund (MYCIF) further strengthening government support for the digitalisation of the economy.
Lavinie Thiruchelvam (pic), CEO and founder of Babydash expressed her gratitude for the successful fund-raising exercise. “On behalf of the Babydash team, I would like to take this opportunity to thank all our investors for their tremendous support. We are extremely excited about the opportunity and path forward. PitchIN too has definitely been a strong pillar for our success and we would like to extend our utmost appreciation for their continuous partnership.”
Kashminder Singh, chief strategy officer of pitchIN said, “One of Babydash’s key values in their success is that they have been constantly visible from the get-go with a sound business proposition.”
Babydash was founded 10 years ago in a nascent market, and has built a trusted and reputable brand, having tested and measured many strategies over the years in this dynamic market landscape.
It has evolved into a one stop online shopping destination that provides the largest range of genuine, curated, high quality mum and baby products at the best prices. With customers increasingly relying on e-commerce solutions during this pandemic, Babydash has provided parents with an invaluable helping hand to meet their needs.
Over the last few months, Babydash has been investing in new technology which enhances customer experience as well as its data analytics capabilities, delivering on its primary goal of serving customers better. Investment proceeds from this campaign will drive Babydash into the next phase, boosting their lead and market presence in Malaysia and growing the Singapore market as they expand their roots across the region.
“Babydash has also evolved and reprofiled to cater for customers’ ever-changing retail demands. While large online marketplaces are growing, there is a clear shift in consumer preferences as customers have shown us that they are looking for specialised platforms such as Babydash where the trust factor is extremely high,” said Lavinie.
She adds that customers continue to grow their spend, affirming their need for higher quality, reliable products that meet the safety requirements and confirming their loyalty to Babydash in this convenient, safe, contactless environment.
Meanwhile, Kashminder (pic) notes that pitchIN has, in just the first 6 months of 2021, surpassed fundraising figures in recent years, despite the pandemic. “We are pleased that investors have continued to invest in deals at pitchIN, enabling great companies like Babydash to be funded. pitchIN is on track to record sharply higher performance this year, with many more deals coming up soon.”