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Still an embryo

There are many start-ups offering babycare and parenting products but there’s a dearth of smart, tech-driven solutions

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Babycare is no more synonyms with brands like Johnson & Johnson or Chicco. A plethora of start-ups like MamaEarth, The Moms Co, FirstCry, BabyChakra and others have been retailing organic and toxin-free products and also doling out some much-needed parental advice.

But has babycare also gotten smarter? Not really, because despite the boom in products and the platforms that retail them, the segment in India lacks an innovative technology-driven approach.

Consider this. At the recent BabyTech Summit in Las Vegas held as part of Consumer Electronics Show (CES), a host of start-ups like Owlet Babycare, Elvie, Miku and Nanit debuted technology-heavy products that guarantee a seamless and intuitive parenting experience. From a portable breast pump that allows mothers to express milk on the go, to a baby band that glimpses at the baby in the womb and tracks foetal heart rate, a baby monitor that captures a baby's breathing and sleep, and a smart swaddle that monitors a baby's overall well-being, the products capture real-time insights for smart parenting.

A technology-focused approach is somewhat lacking in the Indian start-up ecosystem for baby and mother care, believe experts.

Serial entrepreneur Bala Parthasarathy says, "In the US and western markets, mothers are regarded as the most prized audience. There are a host of start-ups that cater to expectant mothers. In addition to the satisfaction of making life easier for expectant or new mothers, it is a time when convenience trumps costs and the time saved for a good night's sleep translates into profits."

Globally, the babycare market is predicted to reach $108.04 billion by 2024, from about $87.14 billion in 2017, according to data by Zion Market Research. In India, research firm Euromonitor predicts the segment for baby and child specific products will reach Rs 2,940 crore by 2021, growing at a compounded annual rate of 8%.

Entrepreneurs feel babycare and mothercare is nascent and relatively untapped in India, with tremendous growth potential for a category such as organic and toxin-free products.

"We continue to be focused on having the best products in the market and continue to expand the product range. We have a very capital-efficient business model and have adequate cash for our strategy. Investors are very bullish and are continuing to support our next phase of growth," says Malika Sadani, founder and CEO, The Moms Co, a personal care start-up offering toxin-free products for to pre- and post-natal care, which recently raised $1 million in Series A funding round by Saama Capital and DSG Consumer Partners.

Babycare start-ups have indeed received a decent share of investor attention. Last month, FirstCry raised over $149 million in funding led by SoftBank. In 2018, Mamaearth raised $4 million in round led by Stellaris Ventures and Fireside Ventures. Online parenting platform BabyChakra had raised an undisclosed amount from investors like Mark Mobius-backed Equanimity Ventures and Facebook director Anand Chandrasekaran in mid-2018.

Technology, however, continues to elude the sector. According to Parthasarathy, who has founded start-ups like MoneyTap and Snapfish, there are hardware products like smart robots, wearable monitoring systems, convertible infant seats and there are software ones that use artificial intelligence (AI) and virtual reality (VR). "However, the Indian ecosystem has hardly any hardware innovation. It is pretty much confined to China and the US."

"It is also to do with the economics," says Anirudh Damani, managing partner, Artha Venture Fund. Damani says the disposable income levels for typical Indian families are not high enough to encourage discretionary spending in tech-heavy products and gadgets.

Smart babycare and mothercare products command a heavy cost, owing to the intensive research and development that go into innovation. The Elvie smart breast pump that debuted at CES 2019 costs £229, while the Nanit smart breathing system for babies that includes a monitoring camera, mounting system, band and swaddle costs $379. Bengaluru-based Bempu Health has products like a device that monitors a new-born baby's temperature, and costs about Rs 2,500.

"Smart products that provide real-time updates and sensors require heavy investment, which is not often possible with start-ups. With limited budgets the products that are developed do not often meet the aesthetics of products developed in the western markets," said an expert.

Damani says, "A lot of demand in the West for such products is driven by the nuclear family setups, a phenomenon that is yet to catch up across India."

Parthasarathy feels venture capitalists will fund ideas and products as long as they don't try to compete with the likes of Amazon by creating one more e-commerce platform for baby products.

The sector, says Damani, would be interested in wearable technology for babies that can monitor activity levels, health and sleep patterns. "The data thus captured can be analysed for early detection of illnesses and can alert caregivers on any growth-related lags. Besides, I see a large opportunity in building business-to-consumer models for providing nutritious, healthy and preservative-free food for babies."

BIB ECONOMY

Rs 2,940 crore – Market for baby and child specific products in India by 2021 8% - It's compounded annual growth rate

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