Hopscotch, a fast-fashion kids’ clothing brand, announced it has raised $25 million in funding from EE Capital, an investment arm led by Facebook co-founder Eduardo Saverin, Lionrock Capital, Rise Capital, RPG Ventures and IIFL Seed Ventures Fund.
Angel investors including Wei Yan, the cofounder of Diapers.com, and Techpro Ventures, the fund owned by Atul Nishar, the founder of Aptech, also participated in the funding round.
Founded in 2012 by Harvard Business School alumni Rahul Anand and Lisa Kennedy, Hopscotch claims that it is India’s largest technology driven, fast fashion kids apparel brand. The startup is backed by a range of venture investors, including Eduardo Saverin (Co-founder, Facebook), LionRock Capital (Singapore based growth fund), Wei Yan (CTO and co-founder of Diapers.com), and Toivo Annus (CTO and co-founder of Skype).
The company, through its digital platform, also sells food and personal care branded items owned by third-party firms.
“Eighty percent of our revenue comes from repeat moms, we launch 400 styles every day, while most brands launch 800 a year,” Anand, who is also its CEO, said. “Every minute, we sell two dresses.”
According to Anand, mothers are increasingly spending more on clothes for children and stretching their budget to buy branded products amid a range of options due to increased access, double-income households, and better selection online.
The children’s category is dominated by unbranded items, but consumer demands are changing, industry executives said.
“In our own mix, we have seen a 20-30% jump in kids’ fashion, nearing full recovery compared to pre-Covid-19 levels,” said Shital Mehta, CEO of Max Fashion India.
Hopscotch plans to move its brand beyond its own platform to other marketplaces.
“We have been approached by every horizontal player out there…last few months, we have been piloting with Amazon India and early numbers look good,” Anand said.
“When we began 80% brand was overseas… now a majority of the proportion is sourced from India and pre-order, as a percentage, is a small share of our business,” he said.
In 2011-2012, Hopscotch started as a destination where leading brands from around the world listed products and largely on pre-orders, helping mothers discover the latest in kids’ fashion from the comfort of their homes.
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