China-based Hi!Papa has completed a series A+ fundraise led by L Catterton, the investment firm behind emerging brands such as Oddity, Elemis, Function of Beauty, The Honest Company, Irene Forte Skincare, Tula and more.
Hi!Papa is a personal care brand designed for children ages 3 to 12, a market that has reportedly grown 12% annual over the past 4 years. SKUs include sunscreens, face cleansers and creams.
The funds will support market growth for the brand amid increasing uptake of domestic brands among Chinese consumers. This is in line with recent domestic brand deals, including Estee Lauder's stake in Chinese fragrance brand Melt Season.
In developing products, Hi!Papa taps a community 200,000 of consumers who are asked to rank the brand based on key purchase considerations such as ingredient safety, product efficacy and texture.
The omnichannel brand is reportedly a top performer in Douyin and Tmall; its revenue and profit have reportedly increased "several fold over the past few years," per the brand, and doubled over the past 12 months.
"Hi!Papa is committed to providing school-age kids in China with safe, gentle, and effective skincare solutions that meet their unique needs," said Hi!Papa founder and CEO Jiangsheng Xuyu. "There are many water-centric skin care products for babies and toddlers, as well as many anti-acne ones targeted at adolescents, but almost none specially formulated for children aged 3 to 12. We have made significant headway since our establishment just four years ago and are excited about the road ahead as we leverage L Catterton's operating capabilities to continue building our brand, broadening our product suite, and augmenting our distribution network."
Scott Chen, a managing partner in the RMB fund of L Catterton, added, "Having made more than 30 investments in the global personal care space, we have seen demand for products which specially meet children's skin care needs arise in other markets as they mature, and are not surprised that this arc is now unfolding in China too. Hi!Papa has likewise identified this market opportunity and methodically developed products that resonate with its target consumers, enabling it to not only capture white space, but also engender strong brand equity and win long-term customer loyalty. Its many achievements since its founding have been remarkable and we believe that it is poised for further success."
