Babytree Secures Over RMB 3 Billion in Funding and Files for Domestic IPO

On July 19, BabyTree, a maternal and infant care platform, announced that it had secured over RMB 3 billion in financing in June this year. It is reported that following the completion of this funding round, BabyTree has dismantled its VIE (Variable Interest Entity) structure and will officially return to China’s domestic capital market.

Wei Xiaowei, Chief Operating Officer of Babytree, stated, “The completion of this round of financing marks a critical step in Babytree’s successful return to the domestic capital market.” He revealed that, in addition to facilitating the exit of USD-denominated investors, the RMB 3 billion raised will be allocated to building out BabyTree’s maternal and infant ecosystem business.

Regarding the question of why BabyTree is returning to the domestic capital market, Wei Xiaowei stated that, as a Chinese enterprise serving Chinese families, there is no reason to allow foreign capital markets to define BabyTree’s value. “By returning to the domestic capital market, BabyTree will gain recognition for its tremendous efforts on behalf of tens of millions of Chinese families, which will also enable us to more clearly and transparently lead industry development and fulfill our mission as the gateway for Chinese families.”

Public records indicate that BabyTree was founded in March 2007 and had previously received capital injections from multiple institutions, including Matrix Partners China, SIG, Broadband Capital, and TAL Education Group. In June 2015, BabyTree also secured strategic investment from Qianhe Capital, founded by Wang Yawei, although the specific investment amount was not disclosed. Last July, BabyTree completed a $300 million financing round led by Jumei International Holding Ltd. Wei Xiaowei revealed that all of BabyTree’s original USD investors participated in this round of RMB-denominated investment.

According to Wei Xiaowei, “The strategic and financial investors that BabyTree ultimately selected and newly introduced are all those who can contribute to BabyTree’s next stage of strategic development. In particular, by vigorously expanding in the health and education sectors, fully integrating access points with resources, BabyTree aims to provide high-quality products and services to Chinese families, improve users’ quality of life, and meet the demands of consumption upgrading.”

Wei Xiaowei stated that BabyTree will vigorously develop in the health and education sectors, fully integrating access points with resources to provide high-quality products and services for Chinese families, improve users' living standards, and meet the demands of consumption upgrading.

According to a data report previously released by the third-party data firm Analysys, BabyTree has become a platform covering 90% of internet-using mothers in China, with its traffic surpassing that of the U.S. maternal and infant community BabyCenter. According to the latest official data released by BabyTree for the second quarter of this year, the platform’s monthly unique users reached 170 million. Its revenue model primarily relies on advertising, e-commerce operations, and its service ecosystem.