Babytree, a China-based online parenting services and e-commerce platform backed by e-commerce group Alibaba, has filed for an initial public offering in Hong Kong.
Founded in 2007, Babytree runs a platform that enables parents to share experiences and advice with others, while also offering professionally written advice. It also operates an online store for baby and children’s products and has launched an app focused on child development.
Proceeds from the offering will be used to drive business expansion efforts, boost research and development activities and pursue strategic investments and acquisitions.
Alibaba bought a reported 10% stake in Babytree earlier this month at a $2.2bn valuation. The companies entered a long-term strategic collaboration agreement to build the country’s largest social marketing platform for young families as part of the deal.
Conglomerate Fosun led a $450m funding round for Babytree in 2016, with commitments from education services provider Tal Education Group, Matrix Partners, Chenshan Capital, China Merchants Wealth and unnamed additional backers.
Tal Education had already supplied $23.5m for the company in 2014. Online cosmetics retailer Jumei subequently injected $120m in convertible note financing in 2015 along with the provision of a $130m revolving credit facility.
Jumei International sold a 4% stake in Babytree to an unnamed third-party investor earlier this month, reducing its shareholding to approximately 3.3%.
Wang Family Limited Partnership, a vehicle owned by Babytree’s founder Wang Huainan and his wife, is the company’s largest shareholder, with a 26.1% stake. Fosun owns 24.8%, while Tal Education has a 10.2% stake and Alibaba 9.9% through its Taobao China subsidiary.
Morgan Stanley Asia, Haitong International Capital and China Merchants Securities have been hired as underwriters for the proposed offering, as have UBS and Fosun Hani.