Flipkart, Amazon plans to take a minority stake in Hopscotch
Hopscotch has appointed Barclays as an investment banker to raise up to$60 Million.
Hopscotch is planning to expand its business and hire more employees.
Kid appeal startup is planning to buy back shares from employees.
Hopscotch has 3 Million active users monthly and has generated $70.06million revenue annually.
Amazon and Flipkart are planning to buy a minority stake in Hopscotch.
Hopscotch a six-year startup that sells kids appeal online has appointed Barclays as an investment banker to raise up to $60 Million to fund its expansion plans including increasing its workforce. E-commerce unicorns Amazon and Flipkart are planning to buy a minority stake in the firm. Rahul Anand CEO of Hopscotch confirmed, “We have initiated negotiations with some strategic players and financial investors but no deal is signed yet.”
Due to the implementation of new FDI policies in India E-commerce giants Flipkart and Amazon are facing trouble in India and are looking to bring some direct sellers on their platforms.
According to latest reports Hopscotch is planning to buy back shares from employees. This proposal to rose to 100 employees out of which 20 have agreed to liquidate their shares.
Hopscotch was founded in 2012 by Lisa Kennedy and Rahul Anand. It is an online store which sells international brands of products like clothes, accessories, shoes, maternity wear, and toys among other products for babies, kids, and moms.
The children clothing in India is bound to Rs. 95,000 crores and 20% expansion is controlled by unbranded products. But Hopscotch has attained the attention of investors in this domain because of its cost-conscious approach and frugal spending.
It claims to have 3 Million active users monthly and has generated $70.06 million annually.
According to Harminder Sahni, retail expert and managing director of Wazir Advisors,
“The market for children’s wear is a tough, but ripe, one for unique brands. The biggest challenge in kids’ wear is the lack of distribution because there are no specialized store chains in this area.”
Hopscotch is into secerning lifestyle categories that aren’t low margin. Their technology and approach throw more than 400 to 500 styles per day and we can understand top selling fashion within a few hours.
Yet now Flipkart nor Amazon has confirmed about the deal with Hopscotch and has not commented on several emails and queries.
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