Infant formula startup Bobbie raises $50 million
Bobbie, a maker of organic European-style infant formula, announced earlier this week it raised a Series B of about $50 million, increasing the startup's total backing to $72 million.
- Its CEO and co-founder Laura Modi spoke to me about the funding and what's next.
Why it matters: Infant formula is a difficult egg to crack because it is closely regulated by the Food & Drug Administration, requiring more investment up front.
- "This is a product and business model that’s smart enough to be profitable quickly, but it requires deep investment," Modi tells me.
- It took three years to bring the first product to market, she added.
Of note: Bobbie raised seed funding of $6.5 million previously and a $15 million Series A.
By the numbers: Revenue is expected to grow five times this year, which equates to about $90 million.
- The valuation as a result of the raise is above $100 million: "It has more than tripled post money with this latest round," a spokesperson said.
Between the lines: Bobbie's inaugural product, made available about 14 months ago, generated $18 million in sales solely via a DTC model in its first year.
- The company is growing 60% month over month, a pace that is not slowing, Modi says.
- Contributing to the growth is not just the brand's organic appeal literally and figuratively, but also due to broader infant formula shortages and product recalls.
- In that vein, proceeds from the Series B will be invested in Bobbie Labs. The aim is to incorporate the latest research and science into products launched over the next handful of years.
Details: In exchange for purchasing a subscription, parents are guaranteed monthly deliveries to their doorsteps.
- "It’s not just what we’re growing to, but how we’re growing," Modi said, noting that 80% of new business is due to customers finding the brand, not due to Bobbie shelling out a lot of cash on customer acquisition.