With recession-busting double-digit growth in 2009, Wilkes Barre's
Babyage is expanding with an infusion of $15 million in private equity and venture capital. The online retailer of clothing and furniture for babies, toddlers and
youngsters will use the investment to expand its product line and
potentially its workforce and warehouse in Hanover Township. Alumni Capital Network and Brook Venture Capital, a current investor, provided the new round of financing.
"Right now, we’re about at capacity in our warehouse," says COO Joe Sponholz of the facility located in the Hanover Industrial Estates. "Over the next six to nine months, before the next holiday season, we will grow. Whether it’s a second location or new building, I’ll withhold comment.” Founded in 2000, BabyAge now employs 32. Warehouse capacity--currently 55,000 square feet--has been a significant factor in meeting the competition from big-box stores, says Sponholz, allowing Babyage to offer a wider variety of products with same-day shipping.
"Every generation is becoming more comfortable with technology in general, more confident in using the Internet for significant purchases," says Sponholz. That’s especially true of the new-parent demographic Babyage targets.
Sponholz says the firm markets some products in the Canadian market and plans to expand to Europe in categories where products aren’t subject to conflicting municipal design regulations.
Source: Joe Sponholz, BabyageWriter: Chris O’Toole