Specialty infant formula manufacturer Bubs Australia is raising $63 million in additional capital to support its growth initiatives and scale the business.
The company says the equity raise will assist in rapid market expansion, build its inventory and support capital expenditures in the US including marketing, administration, employment costs as well as tripling canning capabilities at the business’ Deloraine manufacturing facility. Bubs has had products approved by the US FDA to help ease the shortage of infant formula in the country.
The institutional component of the fundraising round, amounting to around $40 million, was completed today.
Dennis Lin, executive chairman of Bubs, said: “Despite a challenging macro environment, Bubs is delighted to return to a high growth trajectory with record revenue and strong momentum across all key business segments, resulting in groupwide gross margin improvements and delivery of the first profit.”
The company expects its gross revenue to exceed $100 million in this financial year.
Bubs founder and CEO, Kristy Carr, said raising additional funding was identified as a “strategic priority” two years ago and the recent events have “fast-tracked” the raise.
“The company is working in collaboration with the US Government to facilitate a regulatory pathway to continue to supply safe infant formula products to American families for the long-term.”
