According to Pew Market research conducted a few years ago, more than 75% of parents in the US reached out to social media networks for parenting related issues. It is not just the US, but parents of other nations also rely significantly on the Internet as a source of information. Recently, China-based Billion Dollar Unicorn Babytree announced plans to list on the Hong Kong Stock Exchange.
Babytree’s Offerings
Beijing-based Babytree was founded in 2006 by Bo Shao and Huainan Wang to provide young parents with online support for their parenting needs. The service was launched in 2007 and aimed at creating a social network for young parents to connect with each other. Today, Babytree has two primary platforms: Babytree Parenting on mobile app and website and WeTime, a mobile-only platform focused on child development.
Over the past decade, it has leveraged its social connection to develop high-quality user-generated content. Additionally, Babytree has also invested in the development of professional content to cater to the needs of its target audience. In 2016, Babytree began offering premium content services to its users that allow parents to reach out to experts for a fee.
Babytree has also monetized its parenting community to establish a niche e-commerce platform Meitun Mama. It offers a comprehensive suite of product and services that cater to the learning, sharing, recording, and shaping requirements of parents in China.
Babytree’s Financials
Babytree earns revenues through e-commerce, advertising, and content management services. It has seen strong revenue growth over the past few years. For fiscal 2017, revenues grew 43% over the year to RMB 729.6 million (~$100 million) while losses have narrowed from RMB 935 million (~$128 million) to RMB 911 million (~$125 million).
By segment, it reported 51% of its revenues from advertising segment and 46% from e-commerce. It generated a modest 3% revenue through content monetization.
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