If this were 1999, Diapers.com certainly sounds like a company that should eventually be headed to the deadpool, but its 2010 and people are actually buying products online, and Diapers.com is selling a LOT of diapers. In fact, according to Diapers.com CEO Marc Lore, “this year we will sell a half a billion diapers”, which he believes is four times as many diapers as the next largest online seller, Amazon.
Lore says Diapers.com generated $182 million in revenues in 2009, up from $89 million in 2008 and Lore says they are on a run rate to bring in $275 million in revenue this year.
Lore told TechCrunch that they just raised a $20 million debt around. Last October they raised $30 million in equity from NEA, Accel and Bessemer in a series E financing. Total capital raised since 2006 is $78.5 million.
Lore says that they’re using the cash raised to increase their marketing budget from $15 in 2009 to $30 million for 2010, and are currently operating at break-even.
So the question is, will Diapers.com become the “Zappos of Diapers and baby gear”, eventually being acquired by Amazon, or will they continue their growth trajectory towards an eventual IPO? Zappos generated $1.2 billion last year and was acquired by Amazon in cash and stock, and thanks to the rising stock market, the acquisition has returned Zappos shareholders $1.2 billion. It will also be interesting to see how the secondary market reacts to Diapers.com, now that their CEO has provided their revenues and profitability for the last few years.