Coterie, a diaper creator, has secured $2.75 million in funding. Willow Growth led the round with participation from others that included RiverPark Ventures, M3 Ventures and Michael Silverstein.
New York, NY – November 18, 2020 – Coterie, award winning creator of the highest-performing diaper on the market, announced today a $2.75M series seed funding led by Willow Growth, an early stage fund investing in the next generation of consumer brands. RiverPark Ventures, M3 Ventures, Michael Silverstein and others also participated in the round.
Coterie was founded with a mission to make parents’ lives easier, starting with a better diaper. In the past 35 years, there have been no meaningful innovations in the diaper industry because the market has been dominated by two brands with little incentive to evolve. After extensive global research and over 5,000 hours of development, Coterie developed a high-performance diaper that outperforms the competition on every metric. It keeps your baby drier, longer, and ensures healthy skin, better sleep, and fewer leaks and blowouts. Coterie diapers are made with the cleanest materials and use clothing-grade, sustainable materials that make them extremely soft and gentle. Coterie was recently named The Best Diaper by one of the top parenting media sites, The Bump.
The global diaper and wipes industry is currently a $68B market with enormous growth potential. After just over one year on the market, Coterie has sold over 5,000,000 diapers and boasts an incredible Net Promoter Score (NPS) of 92. The brand has grown over 45% in the past quarter alone and is averaging a 70% month over month repeat rate. All of this during a downturned economy and in a market that is perceived to be crowded. But as new brands continue to enter this market, they still lack the innovation and performance that has made Coterie stand out.
This round of funding is being announced as Coterie introduces an even better diaper, with improved absorption, surface dryness and fastening system and launches a first-of-its kind SMS service, enabling parents to easily reorder by text. This innovative Text Order Management service is another way Coterie makes parents’ lives easier, giving parents access to their account, ordering, and customer support team all without ever needing to visit the website. The brand’s Auto-Renew service offers parents unprecedented convenience – email or text communications are sent, allowing them to pause, cancel or revise their order before anything ships.
“I discovered Coterie, just like any other parent would, searching for the best diaper for my baby,” says Amanda Schutzbank, of Willow Growth. “Coterie diapers exceeded my expectations. As a parent, nothing is more important than a happy, healthy baby. As an investor, it is a unique opportunity to find a company that delivers both unmatched performance and an emotional benefit in supporting parents. Frank and his team have already demonstrated the ability to deliver on their vision and I am excited to be a partner in the next phase.”
This round of funding will be invested in new product development and initiatives such as free trial packs to help expand the brand’s market reach.
“I very much didn’t set out to become a diaper engineer. But it seemed crazy to me that this product that is so integral to parents’ and babies’ lives hadn’t evolved in 30 years, despite so many technological advances, ” says Frank Yu, founder and CEO of Coterie. “Parents today expect high-quality, high-performing products in every area of their lives; why should diapers be any different? There was a clear opportunity to deliver something so much better. Designing the best diaper, was just the start for Coterie. We will continue to look for ways to innovate and deliver better products and services that make parent’s lives easier.”
Coterie has also named independent investor Michael J. Silverstein chairman of the board. He is the former head of consumer practice at Boston Consulting Group, and an experienced private equity investor. Silverstein is the author of Trading Up, the best-selling marketing book.
“Coterie delivers technical, functional and emotional benefits,” Silverstein says. “It’s in the design, the fit and fabrication, the better components. It permits parents to say, ‘I’m giving my baby the very best start – dry, comfortable, protected.’”
Founded in 2019, Coterie is an innovative baby care brand for the uncompromising parent. Coterie creates high-performing baby care products and pairs them with convenient services to make parents’ lives easier. The brand’s flagship product is an award-winning diaper — a fast-wicking, super-absorbent, and incredibly soft diaper. They also have 100% plant-based, fragrance-free wipes, and will soon offer other staples in the baby care space.
For more on Coterie, please visit https://www.coterie.com