Funding Into Mom And Baby Care Companies Plunges 80% In 2022: Tracxn According to the survey, the total funding raised by mom and baby care companies across the globe in 2022 was $418 million, a plunge of 80% from $2.1 billion in 2021
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Tracxn, a global SaaS-based market intelligence platform, has released its Tracxn Feed Report - Mom & Baby Care ahead of International Mother's Day. The report, based on Tracxn's extensive database, provides insights into the global mom and baby care space.
According to the survey, the total funding raised by mom and baby Care companies across the globe in 2022 was $418 million, a plunge of 80% from $2.1 billion in 2021. This sector attracted investments worth $21 million in Q1 2023, compared with $3.86 million in Q4 2022 and $26.5 million in Q1 2022.
It is revealed that the drop in funding in 2023 so far is majorly due to the absence of late-stage investments. Elaborately, the Seed-stage funding in Q1 2023 fell 21% as against Q1 2022 but jumped 444% from Q4 2022. Also, early-stage investments in the first quarter of 2023 rose 158% when compared with Q4 2022, but dropped 64% from Q1 2022.
As per the data, the US takes the lead in terms of funding, followed by China and India. Mom & Baby Care companies in the US have raised $5 billion till date, while those in China and India raised $2.8 billion and $1.4 billion respectively. Additionally, it was further found that In terms of funding, gamified learning platforms for pre-K children is the top-funded business model in the last two years in this space, followed by online retailers and breast pumps.
However, the pandemic accelerated the growth of the mom and baby care space, giving rise to innovation in this segment. Also, millennial and Gen Z mothers have increased the adoption rate of tech solutions in their parenting methods. For the growing number of working mothers, balancing work and parenting has become crucial, boosting the demand for more efficient and convenient solutions, which is claimed to be because of the rise in the working class population with a higher disposable income, is also a supporting factor for growth in this space, the study noted.