In Brazil, Babies Mean Business
Baby boom? It looks like there is a burgeoning baby e-commerce sector in Brazil.
Most recently, Baby, a Brazil-based online retailer of baby goods, just secured $16.7 million in financing, led by Accel Partners, according to The New York Times.
This announcement comes hot on the heels of more Brazil baby start-up success: Another online retailer, Bebestore, recently raised more than $10 million from London-based venture capital firm Atomico, reported The Times.
Overall, Brazil’s economic growth forecasts continue to drop, but e-commerce still entices investors. Why? Brazilians spent 26% more online last year than they did in 2010—or $10.1 billion. This year, experts estimate total spending to increase to $12.6 billion.
While the sector is growing, it does offer unique challenges for entrepreneurs. The two Americans who founded Baby, Davis Smith and Kimball Thomas, told the paper they struggled with a shipping infrastructure that is very different from that in the United States.
“Being an entrepreneur in Brazil is not for the faint of heart,” Smith told The Times.