Children’s goods online shop

The segment of baby carriages and beds ensures a high average profit and break-even even with low marginality. However, the problem with this segment is the low proportion of re-purchases, since the assortment itself assumes only one-time contact of the buyer at the time of the birth of the child. Output from the adjacent segments of children’s clothing, hygiene products, and food for children was hampered above all by the fact that for these segments, the key competitive advantage is the delivery speed, which must be performed the next day at most. This, in turn, requires a significant amount and substantial investment in working capital. Thus, the choice was made in favor of the sale of the company to a larger industry player, who has weak positions in the range of prams and cots.

Business: 80 million rubles per year revenue, zero profit, more than 1000 orders per month.

Deal: Conducting a large advertising company in exchange for a share in equity.

Deal Industry: Internet, Retail

Deal Type: Media for Equity