Peeko Raises $3.2 Million Funding from Stellaris to Scale Babycare Quick Commerce

Peeko, a Bengaluru-based quick commerce startup specializing in babycare products, has successfully raised $3.2 million (about Rs 28 crore) in a seed funding round led by Stellaris Venture Partners. This funding milestone marks a significant step for Peeko as it seeks to expand operations and redefine the babycare shopping experience through fast, curated deliveries.

Key Highlights of Peeko’s Funding Success

The funding round was led by Stellaris Venture Partners and also saw participation from notable angel investors including Maninder Gulati (former CSO of OYO), Kunal Bahl and Rohit Bansal (co-founders of Titan Capital), Abhishek Goyal (co-founder of Tracxn), Nitin Gupta (founder of Uni), and Arjun Vaidya (co-founder of V3 Ventures).

Founded in 2025 by IIT alumni Chetan Sharma (ex-Leap), Vivek Khetan (ex-OYO), and Abhijit Gairola (ex-Leap), Peeko offers curated babycare products delivered within 60 minutes in Bengaluru.

The startup currently operates in 10 pincodes in Bengaluru from a 4,000 sq.ft dark store and plans to expand its footprint with additional dark stores and a consumer app launching in September.

Peeko’s product range covers apparel, toys, accessories, baby gear, and consumables, targeting a largely underserved quick-commerce babycare market segment.

Leveraging artificial intelligence, Peeko provides personalized product recommendations, aiming to solve key pain points such as high return rates and inconsistent product quality prevalent in current babycare e-commerce.

Strategic Investment to Accelerate Growth and Customer Experience

Peeko will utilize this funding infusion to enhance its product assortment, app and technology platform, supply chain capabilities, and talent acquisition. The company is also experimenting with innovative services like ‘try and buy,’ enabling parents to check baby apparel and accessories at home before purchase, an approach unprecedented in babycare quick commerce.

The investment enables stronger control over product quality and delivery timelines, critical in the trust-based babycare segment.

Stellaris Venture Partners’ Mayank Jain emphasized that babycare product economics differ from other quick-commerce categories due to SKU breadth and purchase frequency, requiring specialized focus versus horizontal platforms.

Peeko aims to build defensibility in a market dominated by offline players like FirstCry, which also offers same-day delivery in select cities, and horizontal quick commerce giants like Blinkit and Zepto which may expand into babycare if demand grows significantly.

Market Potential and Competitive Landscape

The baby and kids market in India is large but fragmented with offline sales dominating and e-commerce penetration relatively low. Frequent repeat purchases driven by needs for diapers, wipes, clothes, and toys make it an attractive segment for quick commerce.

Consumers in this space typically spend over $100 (approx. Rs 10,000) annually on babycare products, with heavy users spending more.

Peeko’s curated assortment and faster delivery are aims to attract convenience-seeking, time-constrained parents who value quality and reliability.

The startup’s focus on deep vertical specialization contrasts with horizontal quick commerce platforms that target maximizing margins per square foot through fast-moving essentials.

The Road Ahead for Peeko

Peeko’s ultimate success will depend on rapidly scaling operations within Bengaluru, improving service quality, and validating novel services like instant return and try-and-buy experiences. The company plans multiple pilot launches in other metros after Bengaluru based on market demand.

Expansion involves enhancing supply chain robustness and building customer loyalty through personalized service.

Continued investor confidence and ability to compete with larger established players remain key challenges.

In summary, Peeko’s latest funding round positions it well to capitalize on the underserved babycare quick commerce market and build a defensible niche through specialization, innovation, and superior customer experience.

Sources: Economic Times, MoneyControl, Inc42, ETtech