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The internet is a big place, and there are millions of recommendations for baby products. So how do you find the right products? And why would you trust a childless 20-something to help you?
Well, Zarina Bahadur got her inspiration, actually, from a mom in a grocery store while she was a student studying business in Irvine, California.
“I was at Target and I saw a mom in her work clothes and she had a crying baby in one hand and a toddler in the other and her cart was full of baby products,” Bahadur told TechCrunch. “We’re living in the 21st century, why can’t all these things come to her and be packed in a box. Where did the idea come from?
She began to do some research and new parents Bahadur experienced something called “analysis paralysis”. There is an “overabundance of baby products,” including some that aren’t needed, she said, but it’s difficult to cut through the noise to find the basic products that will help a baby grow as they age and develop.
Bahardar 123 Baby Box, a monthly subscription box for children, launched in March 2021 to develop products for parents based on their child’s age and developmental needs. Subscriptions are $59.99 per month or $49.99 per month for six months and $39.99 per month for an annual subscription.
Zarina Bahadur, Founder and CEO of 123 Baby Box. Image Credits: 123 baby box
Along with other choices, members are sent a box containing products from six categories: health and wellness; development; game time Important items such as clothing and bedding; “Mom’s goodies,” like lipstick, face masks, or bath tubs; And special attention lights, which can be children’s technology.
For manufacturers, the Company may provide customer insights regarding their products, including demographic information on where their products are popular. 123 Baby Box is also working with them to launch new products in the boxes and advertising opportunities.
Baby products are a huge market — $29 billion in the U.S. alone — so as you might imagine, 123 Baby Box isn’t the only company creating registry boxes for parents. Bahadur said the company’s closest competitor is children’s subscription box company Lovery, which has raised $126 million in venture-backed funding since it was founded in 2015.
Explaining the difference between 123 Baby Box and Lovery, Bahadur explained that Lovery ships wooden toys every two months, while her company’s boxes are tailored to the baby’s age and developmental stage.
Bahadur added, “Our place is always green. “Our convenient subscription service not only brings you the hottest and most exclusive products, but also the ones that are useful and must-haves.”
Bahadur learned just how important 123 Baby Box is to parents. Not only did she win first place in a UC Irvine startup competition, but eight months after launching the company, she received a buyout offer. She refused.
Last year was also filled with a lot of activity: the company grew 245%, tripled its revenue and increased its monthly recurring revenue fivefold by 2021. A breast pump distributor is about to ship 123 Baby Boxes to its 1 million customers.
123 Baby Box has added five employees for a total of 9 and now works with popular baby and children’s brands including Fisher-Price, Mattel, Nubby and God’s Paradise.
Although Bahadur has been supporting the company since its inception, after securing the distribution deal, she knew she needed more money to deliver those boxes, and was packing them out of her parents’ garage.
With an investor group, XRC Labs, Sunstone Fund, Salt Lake City Angels, VC California Crescent Fund and angel investors such as former Steve Madden executive Mark Friedman and Demos Parneros, she decided to go after venture capital, having previously raised $1.2 million in seed funding. Former CEO of Barnes & Noble.
The money will be used to move out of her parents’ garage and into warehousing, marketing, hiring and inventory. The round will also help 123 Baby Box’s Series A metrics hit the $100,000 monthly recurring revenue and $1 million annual recurring revenue mark, which will take roughly two years given Bahar’s challenging economy.
Next, the company will build four revenue streams: the box itself, an e-commerce store to sell individual products and a loyalty program, product placement fees to manufacturers and suppliers, and business-to-business sales to 123 Baby Box can be part of employee benefits. Bahadur said the company got its first corporate customer in January.
“We have a 12-month runway with this capital, but we’re trying to extend the funding a little bit further and actually extend it to a 20-month runway to make it sustainable and profitable,” Bahadur said. “When we raise the next round, we’ll be profitable, which I’m happy about.”
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