Wonderbelly plans to raise Series A as early as Q4

Wonderbelly, which markets itself as a healthy-for-you antacid alternative to Tums, is planning a Series A as it plots more retail rollouts, CEO Noah Kraft tells Axios.

Why it matters: Over-the-counter products have drawn interest from consumer product goods companies, early-stage investors, biotech firms and large retailers.

Details: Wonderbelly expects to raise capital in the fourth quarter or early first quarter of next year, Kraft says.

• He declined to disclose how much the Austin, Texas-based company will raise.
• In the meantime, Wonderbelly is spending the next six months pouring over customer data and feedback from retail partners, including Target, Thrive Market and Grove Collaborative.
• For instance, the company discovered a core demographic in pregnant women, who tend to experience heartburn and other digestive issues and are looking for cleaner alternatives, Kraft says.
• The FDA-approved over-the-counter drug has talc-free ingredients and uses sustainable, aluminum packaging to house it.

By the numbers: Wonderbelly is on track to generate about $5 million to $7 million in revenue this year, and expects to surpass $25 million in sales by 2024, Kraft says.

Driving the news: Target has made a push to expand its OTC health and wellness offerings, adding Wonderbelly alongside products like the vitamin brand Care/of, the feminine care brand Proof and the gummies supplement Sugarbreak to its aisles.

What they’re saying: Kraft says much of the movement toward "cleaner" OTC products is driven by consumers.

What’s next: The company hopes to expand its products into other areas of gut health and position them as alternatives to brands like Pepto Bismol, GasAid and Lactaid.

Catch up fast: Wonderbelly has raised more than $5 million from Brand Project, Slow, AF Ventures and Sweet Leaf Tea founder Clayton Christopher.

• The company also counts actress Demi Moore and singer Meghan Trainor as its investors.

State of play: The OTC wellness space has seen a handful of significant, strategic-driven deals.

• German pharmaceutical company Bayer acquired a majority stake in Care/of in 2020, valuing the business at $225 million.
• Nestlé acquired vitamin subscription startup Persona in 2019.
• A year later, Nestlé snapped up vitamin startup Vital Proteins via its Nestlé Health Science subsidiary.
• Meanwhile, VC-backed supplement brands Gainful and Ritual have both found success in Target stores, Axios has reported.