From toys to apparel: Inside the growing market for children’s products

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Subscribe to enjoy similar stories. From educational toys to healthy snacks, consumer brands are tapping into a fast-growing opportunity in children’s products, driven by modern parents’ willingness to invest in high-quality, safe, and innovative offerings. Brands such as Peak XV-backed toy maker Skillmatics, kids apparel-focused Includ, and entertainment firm Green Gold have seen their businesses grow due to interest in a fairly underserved category, the founders told Mint. Skillmatics’ global revenue touched nearly ₹500 crore in 2024 while its India business doubled in the same period compared to the previous year, its founder and chief executive Dhvanil Sheth said.

India is the firm’s second-largest market after the US. “I’ve been in the space since 2017 and I haven’t seen this kind of demand from India. With e-commerce and quick commerce becoming a way of life, the demand for kids products has just exploded," Sheth told Mint.

Includ, which raised $1.5 million in seed funding from Incubate Asia Fund along with Escape Velocity and Abhishek Goyal (Tracxn co-founder) last year, has scaled to an annualized run rate of ₹72 crore in less than two years since inception, its founder Ashwin Rastogi added. Apparel has become the second-highest in terms of spending among many households with children, he said. Listed players are also looking closely at the space, with jewellery and personal care brands jumping on the bandwagon.