(Bloomberg) — Coterie Baby Inc., a startup looking to take on the $6.2 billion US diaper market, raised $23.8 million to fund new products and bolster its advertising.
The round, which included model Ashley Graham and was led by Airbnb Inc. and Impossible Foods Inc. investor Align Ventures, brings the company’s total fundraising to $34 million. Coterie declined to share its valuation.
Launched in 2019, the New York-based company sells premium diapers designed to be more absorbent and faster wicking than the leading brands. Procter & Gamble Co. and Kimberly-Clark Corp. alone hold 78% of the US market, according to Euromonitor International. Challengers such as Coterie, Honest Co. and Hello Bello, founded by actress Kristen Bell, have sought to challenge their dominance in recent years.
Coterie, which also sells wipes, plans to introduce other products parents need in the nursery, founder Frank Yu said in an interview, without elaborating. It’s also looking to expand its advertising beyond platforms such as Facebook and into other avenues including TV.
“We’re investing in marketing campaigns,” Yu said. “Now is the time to invest in brand equity and do more partnerships.”
The company sells most of its products online, though it recently entered Amazon.com Inc.’s Whole Foods Market. Coterie almost quadrupled its business last year and has sold more than 80 million diapers since inception, Yu said. It targets parents in their late 20s and early 30s with disposable income.
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