Bobby Organic Infant Formula builds on impressive sales results in 2021 to top the product line.
Bobby co-founder and CEO Laura Mody told me she expected $4 million in revenue in 2021 but ended the year with $18 million.
“It was so unusual,” she told gaming-updates. “We have focused on growth and innovation and it is clear that our product is in line with the market. This is the product that parents have been waiting for. ,
Modi and co-founder Sarah Hardy founded the company in 2019 to develop American-made baby food. At the time, Bobby was the first new baby food product to hit the market in six years, following customers who found formula on the black market, according to Modi.
It all started with a great lesson. The company voluntarily recalled its product during its first year of operation due to product labeling errors discovered by the U.S. Food and Drug Administration. Modi recently blogged about the recall, telling me it was a “very humiliating and harrowing journey”.
“When the world of regulation and details turns into one of the highly regulated industries, there is no room for error,” she said. “Everyone can pick themselves up and recover, and that puts us in a strong position. It also taught me that women are bad. To see how we dealt with it calmly, humbly and insecurely, and then stood up and said: “Let’s continue.” We were convinced of what the product was capable of. ,
By 2026, the infant formula market will be worth $103 billion. Bobby isn’t the only player in the game, but it’s currently the only company making direct-to-consumer formula: Modi, citing data, shows that 21% of parents plan to shop online next year. There is currently a shortage of infant formula, which was not addressed by the February recall of Similac, a significant player in the infant formula market.
We’ll have to wait and see what happens there, but Bobby and the others fill in the gap. On March 23, Bayhart’s new brand of infant formula will be launched on the website for $39 for a 680-gram can, which equates to 46 4-ounce bottles.
The company’s formula was recently registered with the Food and Drug Administration (FDA) and derived from its own formulation and research and development using a blend of two human milk proteins. This blend was also touted as the first organic whole milk blend in the US.
Both Bobby’s and Byhart’s have received the Clean Label Project Purity Award, and Bobby’s has also been certified pesticide-free.
Also in this space is Helena, a company that uses a precise fermentation process that programs and trains yeast cells to become manufacturing centers to produce proteins almost identical to those found in breast milk. Last November, the company announced $20 million in Series A funding and is currently undergoing FDA approval and commercialization.
Meanwhile, with this bump in the road with the FDA, Bobby really got back to work. Last June, the company raised $15 million in a Series A round and grew from 20 last year to 50 employees. Bobby now serves more than 50,000 parents in every state, and Modi expects the company’s sales to quadruple this year, with monthly growth rates of around 60%.
As some investors started knocking on their doors, Modi and Hardy saw an opportunity to invest in the future of the company and the next generation of its products, which would take more than five years to build.
So today the company announced a $50 million Series B round led by Park West, with existing investors VMG and Nextview, as well as a group of over 100 new investors who are part of AirAngels, Airbnb’s alumni syndicate.
Modi was unable to disclose the company’s valuation, but said it tripled from Bobby’s valuation 10 months ago. He said the new round includes $40 million in venture capital and $10 million in inventory debt and gives Bobby a total of $72 million in funding so far.
The new funding will be used in the new formula products. He is also deepening his collaboration with his production partner Perigo. Bobby will also invest in product development and research and development, including the launch of Bobby Labs, a virtual laboratory that will fund research and innovation in baby food.
Bobby also thinks outside the box when it comes to additional investment in the company. She created Motherload last year so women and their clients can invest in a company that serves them.