Clean-label baby brands gain big traction despite scale hurdles

RISING DEMAND FOR clean-label baby products is powering rapid growth and investor interest in the baby care market, even as concerns linger about scalability and capital intensity in the segment.

- S SHANTHI

Homegrown D2C brands are gaining traction as new-age parents increasingly shift from international labels to domestic ones across categories such as skincare, diapers and apparel. At the same time, according to analysts, while early growth is buoyed by high repeat purchases and strong digital adoption, the business tends to plateau without significant offline expansion and distribution muscle.

The momentum has translated into capital flows. In September, child personal care brand Tuco Kids raised $4 million in a Series A round led by RTP Global, followed by baby care quick commerce platform OZi, which secured $3.3 million from Blume Ventures in October. “Investors usually go where the numbers look steady and the behaviour looks predictable. India sees more than 25 million births a year, which means the demand for baby products is always strong,” Somdutta Singh, D2C expert and founder and CEO, Assiduus Global, told Fe. She added that parents’ preference for safer and better products “has opened doors for many new brands”.