Quidsi runs Diapers.com, an online store selling diapers, wipes, formula, car seats, strollers, cribs and toys with a catalog of about 12,000 baby items (planned to grow to 60,000). The company emphasizes consumable repeat purchases to build customer relationships and then cross-sell higher-margin baby gear; 80% of orders include more than just diapers and the average order size is $100. Quidsi develops its own supply-chain management systems and box-selection software to reduce costs and improve margins, and it is the exclusive e-commerce partner for BabyCenter. Management says they are plowing capital into marketing (budget rose from $15M to $30M in 2010) and that operations are currently at break-even. Reported revenue was $182M in 2009 (up from $89M in 2008) and the company projects a $275M run rate for the current year. The site sells large volumes of select items (about 10,000 car seats per month) and offers free shipping on orders over $50. Diapers.com began in 2005 and has expanded from a site focused on baby essentials to a one-stop shop for everything baby, including diapers, formula, strollers and car seats. The company positions itself as a leading online baby retailer and emphasizes fast delivery, low prices and high-quality customer service. Management says the new funds will be used to secure and accelerate Diapers.com’s market position. The business operates out of Montclair, New Jersey. Marc Lore, Co‑Founder and CEO, framed the company’s mission as making life easier for new parents by carrying everything they need and delivering superior service. The company’s product and service focus is core to its growth plans as stated in the announcement.

Total raised

$50M

Funding rounds

2

Latest round

Debt Financing

Latest activity

Apr 2010