[Funding Alert] Hopscotch Raises $25 Mn From Facebook Cofounder's EE Capital and Others

• Mumbai-based Kids Apparel Brand Hopscotch has raised $25 million from Facebook co-founder Eduardo Saverin's investment arm EE Capital and others.
• Hopscotch is a children’s clothing brand targeting its clothing products at children in the up-to-10 age group.
• With an average basket size of Rs 1,500 and 2.5 units sold per shipment, the company has swung from losses to EBITA profitability.
• In February 2016, Saverin led a $13 million Series C funding round in Hopscotch.

Kids Apparel Brand Hopscotch has raised $25 million from Facebook co-founder Eduardo Saverin's investment arm EE Capital, 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 investment round. Hopscotch, in which Saverin has invested before, is the first Indian company he made a direct investment in.

Hopscotch is a children’s clothing brand targeting its clothing products at children in the age group up to 10 years. Through its digital platform, it also sells food and personal care items owned by other brands.

"Eighty percent of our revenue comes from repeat moms, we launch 400 styles every day, while most brands launch 800 a year. Every minute, we sell two dresses," Rahul Anand, CEO of Hopscotch, said.

“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 added.

With an average basket size of Rs 1,500 and 2.5 units sold per shipment, the company has swung from losses to EBITA profitability. Hopscotch claims that it has had 3 million transactions since its inception.

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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 fresh capital for Hopscotch underscores the attention that the child-focussed consumer segment is receiving.

In recent months, baby product startups like Mamaearth, Cub McPaws, Lil’ Goodness, Timios also raised money in various funding rounds from the investors all around the world.

In February 2016, Saverin led a $13 million Series C funding round in Hopscotch. Before that, the company secured $11 million in a Series B funding round that was led by Velos Partners.

Hopscotch was founded in 2012 by Rahul Anand, who also functions as its chief executive officer (CEO). 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. Hopscotch now plans to move its brand beyond its own platform to other marketplaces.

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