Paladino Capital Bets on Rising Demand for Direct-to-Consumer Businesses

Paladino Capital has acquired direct-to-consumer baby products company Zoe Strollers. The target is known for designing double, triple and quadruple strollers. Zoe also offers feeding and sleeping products.

“Direct to consumer businesses are booming right now and there has been a huge increase in demand for investors to acquire them,” says Jason Somerville, managing partner at Global Wired Advisors who was the sell side advisor to Zoe. “Juvenile and baby products lagged behind the industry trends but the Zoe Strollers acquisition proves that, if you focus on the DTC channel, you can build an extremely successful baby products business quickly and subsequently exit the business at a very high valuation.”

Smaller DTC companies grew 24.3 percent during 2020 and have accounted for $17.75 billion of e-commerce sales, according to eMarketer.