Amazon backs Indian kids fashion brand Hopscotch in $20M funding
Hopscotch, an Indian brand offering fashion wear for kids, has raised $20 million in a funding round led by Amazon amid the ongoing market slowdown and funding crunch that have significantly impacted young firms in the South Asian nation.
The Mumbai-headquartered startup's Series E financing round also saw participation from existing investors including IIFL Seed Venture Fund, RPG Ventures, Lionrock and Techpro Ventures. Facebook co-founder Eduardo Saverin also invested in the round, the startup said.
Founded in 2015, Hopscotch competes against the likes of FirstCry, Babyhug and LuvLap with its wide collection of kids' fashion wear and accessories. The startup gained popularity from various online marketplaces, though its eponymous apps only have about 700,000 monthly active users, according to Sensor Tower data shared by an industry executive.
"Hopscotch is the go-to digital brand for parents who want their kids to look stylish - everyday and on every special occasion," said Rahul Anand, founder and chief executive of Hopscotch, in a prepared statement. "This investment allows us to invest in marketing, broaden our selection, and enable more customers to express their unique sense of style."
Hopscotch plans to deploy the fresh funds to expand its offerings and reach with the latest trends in the kids' fashion category. To date, the startup has raised $71 million, according to data insight platform Tracxn.
"Hopscotch has strong brand recall in the kids’ category," said Preetham N, director, Corporate Development at Amazon, in a statement. "With this investment, we are happy to work with Hopscotch as it continues to reach and delight more customers. Rahul, the founder, and his management team are passionate about building out the brand. We have been impressed to see what they have done till date."
In April 2021, Amazon announced plans invest $250 million in Indian startups through a new vehicle called the Amazon Smbhav Venture Fund. The U.S. giant has since then backed startups including fintech platform M1xcharge, online fresh meat startup FreshToHome and men's innerwear brand XYXX.