Lillydoo grows by more than 40 percent in 2019

Subscription diapers are the success model of the start-up Lillydoo. The recently published annual report shows the more than positive development for 2019.

Founded in 2015, the start-up Lillydoo is best known for its subscription model for diapers, which it delivers to your doorstep. The recently published annual report for 2019 shows that the Frankfurt-based start-up was able to increase its turnover by 41.6%, with the diaper subscription model alone growing by 31.5%.

For 2020, Lillydoo expects a "further significant increase in gross profit in the upper single-digit million euro range". According to the company, new subscription models and the introduction of the Lillydoo app in particular led to greater customer loyalty and satisfaction, thereby increasing usage. Lillydoo is not dependent on "raising further funding".

The start-up also invested in expanding its workforce in 2019, which rose from 105 employees in 2018 to 140 employees at the end of 2019. The net loss for 2019 amounted to 8.8 million euros, compared to 4.8 million euros in 2018. Lillydoo sees the reason for the increase in the "deferred tax assets for loss carryforwards recognized for the first time in the 2018 financial year and special costs in connection with the capital increase."

Lillydoo is expecting higher sales in 2020 due to the coronavirus pandemic. "Instead of regular diaper purchases from retailers, the convenience option offered by Lillydoo of home delivery of diapers via a service model is becoming increasingly attractive," the company writes confidently. However, bottlenecks and delays in the supply chain could have a negative impact.