-By Ankita Dutta.
A recent funding round for Hopscotch, an Indian startup focused on clothing for children, has resulted in $20 million in investment, with Amazon leading the funding efforts. This comes as the South Asian nation’s market slowdown and funding crunch continue to significantly impact young firms. Existing investors, including IIFL Seed Venture Fund, RPG Ventures, Lionrock, and Techpro Ventures also participated in the Series E round. The startup attracted funding from Facebook co-founder, Eduardo Saverin.
Hopscotch was founded in 2015, and it offers a wide range of kids’ fashion wear and accessories. It competes against other brands such as FirstCry, Babyhug, and LuvLap. The industry executive divulged that based on Sensor Tower data, the startup’s apps, which have the same name as the business, are being used by approximately 700,000 people every month, even though it first became popular from selling on diverse online marketplaces.
In a prepared statement, Rahul Anand, founder and CEO of Hopscotch, stated that his company is the go-to brand for parents seeking to ensure their children look stylish, both on special occasions and every other day. Moreover, the latest investment will enable the company to invest in marketing, expand its selection, and grow its reach, allowing more customers to express their unique sense of fashion.
Hopscotch aims to utilize the recent cash infusion to broaden its range of products and stay abreast of the newest fashions in the children’s apparel sector. To date, Tracxn, a data insight platform, reports that the startup has accumulated $71 million in funding. Preetham N, director of Corporate Development at Amazon, stated that Hopscotch has a strong brand recall in the kids’ clothing category. He added that with this latest investment, Amazon is pleased to continue working with Hopscotch to reach and delight more customers. He further praised Rahul, the founder, and his management team for being passionate about building the brand.
In April 2021, Amazon announced that it would invest $250 million in Indian startups through a new vehicle, known as the Amazon Smbhav Venture Fund. Following that, the giant from the United States has made capital contributions to emerging businesses like M1xcharge, which is a fintech platform, FreshToHome, an online meat retailer, and XYXX, which is an innerwear brand aimed towards men.
The latest investment in Hopscotch is welcome news, especially amid the COVID-19 pandemic that has affected many businesses globally. Several Indian startups seeking to raise funds have faced challenges in attracting investors. However, the latest investment demonstrates that some young firms can still attract funding from established and reputable investors such as Amazon. This means that more Indian startups could attract similar investments and continue to grow in various sectors.