Bebê Store has closed a new round of funding. The Brazil-based e-commerce leader for all things baby and kids has brought in US$10 million (R$20 million) in a Series B investment from W7 Brazil Capital and Atomico.
This marks W7 Brazil Capital’s first deal with Bebê Store but is Atomico’s second contribution to the company, having first invested in December 2011. Since that time, the company’s revenues have quadrupled.
Founded by Leonardo Simão and Juliana Della Nina, Bebê Store launched in December 2009. Its online platform now offers over 45,000 products and accessories to families throughout Brazil, rendering the company a leader in the baby e-commerce niche. With this investment, Bebê Store will expand its product range and management team. It will also develop its logistics capabilities to improve service overall.
“Our success with Bebê Store has encouraged us to expand beyond just babies to offer products to mothers throughout their child’s growth,” said Leonardo Simão, Bebê Store CEO. “With these new product lines we are confident we will strengthen our presence and further increase our market share to maintain our online leadership within this sector.”
Henrique Iwamoto of W7 added, “Without doubt, Bebê Store is best positioned to maintain its leadership and become the undisputed category winner within the baby and children’s ecommerce sector. When we first met Leonardo and his team, we instinctively knew their local knowledge and approach would give them a major advantage over their competitors.”
Local knowledge seems to be a significant factor for all players involved, as Atomico CEO Niklas Zennström also highlighted the issue, “Bebê Store continues to exceed our expectations, and we wanted to partner with W7, a fund with an experienced local team, to help take Bebê Store to the next level.”
The support of W7 and Atomico will be key to Bebê Store’s continued success in Brazil, both entities having backed numerous local companies in the past and contributing to their successes. Atomico has invested in Connect Parts, PedidosJá and Restorando, and W7 has funded both Kekanto and Widbook.
Even with this investment, Bebê Store stands to face some tough competition in the sector. Example: Baby.com.br, which has also done quite well in the investment realm and in product diversification as well.