Bebe Burp: 100X.VC Investment Thesis



 

Introduction

Rising concerns among parents about the side effects of chemical ingredients in baby food, has been encouraging consumers globally to switch over their attention to organic alternatives. 

Choosing the perfect mix of healthy, as well as tasty baby food is a taxing job for parents, especially while navigating their way through problems such as non-availability of healthy options, diet charts of babies / toddlers, price points etc. This is one of the most important dilemmas  which Bebe Burp aims to tackle. Bebe Burp is in the process of creating a wholesome and healthier future for children, by providing nutritional and organic baby food to the concerned parents in the market.  It is scientifically proven that the first 2 years of life are the most critical while developing a healthy palate in children which will in turn pave the way for their early experience and behavioural relationship with food.

There has also been an increase in the amount of focus towards clean label trends in recent years, which is only expected to bolster demand for brands with plant-based organic ingredients. Thus, noticing the lack of healthy alternatives in the market, Bebe Burp started its very own journey to make organic and safe baby food products. Bebe Burp offers 100% organic and natural baby food by following traditional grandma’s recipe, available in convenient jars and packets that contain real fruits and veggies and is very easy to make. With introductions such as ragi, puffed rice, khichdi etc, bebe burp dreams to be an affordable as well as suitable baby food brand for the Indian market.

Their current offerings span a wide range of instant mixes, healthy cookies, snacks, protein powder and puffs with multiple varieties for the same.

Where it all began

In 2020, Founders Shruti and Bharat were blessed with a baby boy. The new family noticed that the products available in the markets were not healthy, and most baby food available contained preservatives and artificial flavors. Tired of looking out for western brands whose quality and health assurance they were not satisfied with, they turned to their grandmothers who in turn supplied them with old age baby food recipes that had been tried and tested in their family for generations. They were soon introduced to super grains and healthy ingredients that enabled them to curate quick, easy and most importantly healthy baby food solutions for their child. This led to the idea of starting Bebe burp along with Shruti’s brother Chirag. The decision to make Bebe burp was an instant hit. Paired with all the knowledge they gathered from their grandma’s traditional recipes, they were able to offer 100% organic and natural products with no preservatives and artificial flavors.

Market opportunity 

The market of baby food is growing at a compound annual growth rate of  9.78%  and the present baby food market is estimated to be a total of 4500 CR. With the average age of Indian Population being 26.8 years and the population graph leaning to a younger demographic, the market opportunity for Bebe burp is immense with potential for high growth in the future. As per a study by Future Market Insights (FMI), the sales of organic baby food is set to rise strongly in the years ahead. The market is expected to reflect a double digit CAGR through 2021 and beyond. According to India Baby Food Market Outlook, 2021, the Indian baby food market is anticipated to represent the CAGR of 16.83% during the forecast period. 

However the market opportunity is not only limited to India but is also showing favourable signs on a global aspect. BRIC countries are anticipated to display exponential growth driven by parental concerns regarding adequate infant nutrition. China and India will continue as major revenue contributors in the industry as government initiatives to counter malnutrition among children in these regions are likely to generate a favorable environment for growth.

The Baby food market in India is largely unorganized where non-organic baby food is a large, untouched segment. The current brands present in the Indian market such as Nestle India's ‘Cerelac’ are full of artificial ingredients and flavours while imported brands like Gerber are too expensive for the Indian middle class community.

100X.VC Thesis 

The baby food products market is a blue ocean market, with very few brands in the mid tier range. Home grown Indian baby food brands are scarce in the market so customers end up gravitating towards western baby food / mix brands which by no means are tailored for the Indian palette. Western brands do not consider Indian cultural and dietary requirements which is why Bebe Burp, with its focus on traditional ingredients and recipes, is a breath of fresh air in an otherwise unvarying marketplace. 

Conclusion

The Bebe burp team has effectively turned their personal challenge of navigating the Indian baby food market for the perfect baby food solution into a powerful and successful baby food brand. The team's commitment and drive to provide the absolute best in terms of Baby food is the reason as to why we, at 100X.VC , believe that Bebe burp is headed for great things! With plans of scaling up, bringing in many more exciting products in their line up and catering to wider age groups as well, we believe that Bebe burp’s dream to be the favorite baby food brand and to provide kids with the best quality preservative-free and unadulterated food in India is well on its way! 100X.VC is excited to play a part in achieving this dream!


- 100X.VC Team

Published on: October 27, 2021