INSUBCONTINENT EXCLUSIVE:
A lot of Chinese millennials may be delaying or opting out of childbearing, but those who have committed to parenting often go all out to
ensure their children grow up healthy and do well in school.
One company capitalizing on China booming mother and infant industry — which
is expected to double in market valuation between 2015 and 2018 to top$520 billion, according to consulting firm Roland Berger — is
The Beijing-based firm started trading on the Hong Kong Stock Exchange on Tuesday.
Founded in 2007, Babytree operates an online platform
for parents to exchange know-how, shop for baby goods and purchase early education services.
The firm debuted at HK$6.91, or $0.88, compared
to its IPO price of HK$6.80
That values Babytree at HK$11.5 billion, or $1.47 billion, well below its May valuation of$2.19 billionafter it inked a strategic investment
from Alibaba that saw the partners collaborating on multiple fronts, includinge-commerce, advertising and paid content.
Last week, Babytree
slashed its IPOby 70 percent, to $282 million,amid waning investor interest in Hong Kong.
Babytree, in which Alibaba owns a 9.9 percent
stake, was started in 2007 by venture capitalist Shao Yibo — who founded Matrix Partners&China subsidiary and EachNet, which Ebay bought
out in 2003 to take on Alibaba Taobao — and former Yahoo and Google executive Wang Huainan.
Babytree other major investor is Chinese
conglomerate and investment firm Fosun International, which has also backed its smaller competitor Qinbaboao, a social media service for
young parents to share photos and knowledge.
The parenting portal reached an average of 175 million monthly active users between July and
September, according to its IPO prospectus
Qinbaobao claimed to have more than 70 million registered users when it raised hundreds of millions of RMB in a series C funding round in
October.
Babytree generates most of its revenues from advertising fees and e-commerce transactions, but Wang the co-founder said recently
that paid content is one of the company fastest-growing segments
The parenting site posted revenues of 408 million yuan, or $58.6 million, in the first half of 2018, up 12 percent from the same period a
Its adjusted profit increased by 30 percent to 122 million yuan, or $17.6 million, during the same period.
