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Healthybaby aims to provide parents with toxin-free diapers

A mother with dark hair sits in a living room swathed in a blanket with her infant and toddler as she examines a package of Healthybaby diapers.

Photo: Healthybaby

Healthybaby founder Shazi Visram is applying the plant-based, organic model of her former baby food company Happy Family Organics to a new category — diapers.

Why it matters: The global baby diaper market is expected to grow 59% to about $92 billion by 2030 from 2021, driven in part by demand for organic or toxin-free products.

What's next: Healthybaby, backed by investors including KKR co-founder Henry Kravis, could seek more capital, Visram says.

  • “I could also see our existing investors being very supportive,” she adds.
  • Other investors include Spanx founder Sara Blakely and Seth Goldman, the founder of Honest Tea and Just Ice Tea.
  • Visram declined to disclose how much funding Healthybaby has raised to-date, or provide further details on future capital needs.

Details: Founded in 2018 under the name Healthynest, the company rebranded as Healthybaby after it was able to acquire the domain name.

  • While Healthybaby's flagship product is its organic, disposable diaper, it has since expanded its product line to include prenatal vitamins, skin care and home cleaning products.

By the numbers: Healthybaby's run rate has exceeded that of Happy Family in its fifth year of sales with an eight-figure run rate on very little marketing, Visram says.

  • Year-over-year growth is about 300%, while its customer retention rate is 97% after month one, she adds.

Of note: The startup is relaunching its website in October with improved guides and new content, Visram notes.

  • Plus, a baby diaper fit tool is coming, she says.

Yes, and: The D2C brand gets "requests for retail physical distribution often and we're deciding how to best service its consumers," Visram says, in response to whether we could see the products in a store anytime soon.

Flashback: Visram has a playbook that works, as evidenced by Happy Family's $250 million exit to Danone in 2013.

  • "I would likely have not sold Happy (Family Organics) if I hadn’t gotten an autism diagnosis for my son, and was so shocked by that and not knowing what to do," Visram says.
  • "And then I would have never started this company if I had not gotten that autism diagnosis and then had another child and recognized how much impact the first three years can make developmentally," she adds.
  • "Life throws you curveballs," Visram acknowledges.

The big picture: "We’ve only scratched the surface of what I want to accomplish," Visram explains.

  • "And when I feel like we’ve made headway against the mission, I’ll start thinking about an exit," she adds.
  • "There is beauty in the idea of a brand that can impact health from the very inception of life having a major force in the marketplace."
  • "I would ring the bell for that," she adds, alluding to an IPO.
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