Singapore-based Facebook co-founder Eduardo Saverin and venture capitalist firm Velos Partners, an early-stage investor based in Los Angeles, US have led the Series B funding round for India-based Hit The Mark, parent company of Hopscotch.
This is Saverin’s first direct investment in Indian e-commerce space and he will be joining the company’s board as an observer. The babycare and kids products e-commerce retailer has raised $11 million in the Series B round.
Other Hopscotch investors are Rise Capital, Jabbar Internet Group,Singapore-based LionRock Capital and Skype co-founder Toivo Annus, who’s also partnered with Saverin to invest in Singaporean e-commerce venture RedMart.
Launched in 2012, Hopscotch, targets mothers, offering a range of products, from apparel and shoes to toys and accessories. Rahul Anand, the co-founder and CEO of Hopscotch said, “We have been able to transform the shopping experience by offering access to great merchandise at great prices in a great retail format.”
This latest financing brings its total funding amount to $15 million, with the funds designed for building operational capacity and technology to support growth initiatives, as well as expansion of its product and service offerings.
Saverin said “I have been actively following the Indian Internet market and I am thrilled to make my first direct investment in India in a company of the calibre of Hopscotch. The company’s early track record in the large and growing Indian e-commerce market combined with the team’s experience, energy and vision makes this an intriguing investment opportunity. I look forward to working with the Hopscotch team in the months and years to come.”
Samrat Ganguly, the managing partner of Velos Partners, who will be joining the board of directors, noted that Hopscotch represented a ”…remarkable investment opportunity — bringing together Indian innovation, global best practices and the prospect for both significant domestic and regional growth.”
The online market for babycare and child products is especially large in India, which has the largest youthful population in the world and a large demographic window. Among South Asian countries, India and Bangladesh’s demographic windows are projected to open this year, potentially reaping demographic dividends until 2055, provided parts of their population can be transformed into human capital.
These favourable demographic changes are already benefiting India’s economy, with more people in the working age group and a lower dependency ratio, translating to higher savings and an investable surplus, leading to higher economic growth.
There’s extensive opportunity for childcare and babycare products in India, driven by the high demand in India’s urban centres, with growing populations and birth rates driving demand.