Kiki Milk Maker PlantBaby Raises $4M As Healthy Kid Drink Segment Heats Up

US food tech startup PlantBaby has secured $4M to expand the reach of its plant-based Kiki Milk for kids and launch new products, including a grain-free option this year.

Following several years of continuous revenue growth, PlantBaby has closed a $4M seed funding round for its non-dairy milks, taking total investment in the US startup to $10M.

The financing was led by B2 Partners at a post-money valuation of $20M, with additional participation from Big Idea Ventures, Everywhere Ventures, X Factor Ventures, Women’s Equity Lab Silicon Valley, and Babylist. It is the second seed investment in PlantBaby – the company also raised $4M in 2022, which was a rollup of safe notes from investors.

Its flagship product is called Kiki Milk, a range of plant-based milks for toddlers and children aged one and above. They’re available at Sprouts, Wegmans, Amazon, Thrive, and Erewhon, and have driven the firm’s financial growth since launching in 2021.

“In 2024, we reached $4.8M in revenue, which we are incredibly proud of,” co-founders Alex and Lauren Abelin tell Green Queen.

“With this funding, we’re expanding Kiki Milk’s retail distribution (we are launching nationwide into a major retailer this month), accelerating innovation, and growing our team – all to bring better, healthier options to more households,” they add.

The new capital will also spur its R&D efforts to develop new plant-based dairy and supplement products geared towards kids.

Catering to parents seeking whole-food nutrition

PlantBaby’s current lineup includes four flavours of Kiki Milk: Original, Unsweetened, Chocolate, and Mac Nut. The former three have a base of oats, hemp seeds, pumpkin seeds and coconuts, while the latter has a base of macadamia, cashews and brazil nuts. The milks contain 4-5g of protein per serving, plus calcium, magnesium, selenium and iron.

They’re free from seed oils, gums, preservatives, and glyphosate residue, and contain a range of whole-food ingredients like amla, blueberries, spinach, seaweed, and bananas, depending on the variant.

This plays into consumer demand for clean-label options amid heightened health concerns – four in five Americans say clean ingredient lists are important purchase motivators, and milk alternatives were among the products in focus among consumers most knowledgeable about the topic in 2024.

The children’s food and drink market was valued at $138.8 billion in 2023 and is estimated to reach $ 253.3 billion by 2033, according to Future Market Insights, driven by discerning parents.

“Plant-based milk is becoming increasingly important to kids’ nutrition as more families seek alternatives that align with health concerns, ingredient transparency, and allergies,” the Abelins explain.

“Parents today are more mindful than ever about the quality of ingredients they’re feeding their kids. They want real, whole-food nutrition – not empty fillers or hidden additives.”

PlantBaby exploring grain-free milk, supplements, and spreadable butters

The duo is now looking to expand their offering. “We’ve explored a lot of different plant-based foods when it comes to product development. There are so many things that we get excited about, but we keep coming back to plant-based milk, which is at the core of what we do,” they note.

“We’re exploring a grain-free option of Kiki Milk that would have protein and fat from nuts, and no oats or rice included. We see this as a need for many people who have grain sensitivities or those who are conscious of carbohydrates,” the founders add. This is slated for 2025, as is another single-serve option to add to the existing original and chocolate 8oz packs.

“We’re also looking ahead to 2026 and exploring opportunities to launch shakes or smoothies geared toward children who are active and in search of a drink that can be taken with them on the go,” the Abelins reveal.

“In addition, we’re exploring different supplement options that could be mixed with milk to give further benefits for children and adults, whether that’s immunity focus, vitamin/mineral premix, or even antioxidants.”

PlantBaby had previously also launched a line of Kiki Butters, which combined a base of oats, hemp seeds, pumpkin seeds and coconut in a format akin to nut butters. “We miss our butters and have looked at potentially bringing those back for a limited time, as we know some of our die-hard consumers miss them as well,” the founders suggest.

Most conventional plant milks ‘fall short’

Non-dairy milk is the largest category in the US plant-based market, racking up $2.9B in sales. Nearly half (44%) of households have bought these products – and homes with children are more likely to spend on dairy-free milk.

The Abelins’ household is one such example. They launched PlantBaby after their son’s birth, frustrated with what they describe as a lack of clean-label and dairy-free infant formulas. “We want to be accommodating to all families looking for great whole-food, plant-powered nutrition,” they say.

Food allergies affect one in 13 children in the US, according to the Centers for Disease Control and Prevention – that’s roughly six million kids. “Dairy and soy are two of the most common allergens, yet truly clean, organic plant-based milk options remain limited, especially for kids,” Alex and Lauren argue.

“While plant-based milk has the potential to be a safe and nutritious alternative, most conventional options fall short – often because it’s cheaper for brands to use less real food.

“Instead of nutrient-dense ingredients, many rely on a single whole food – like almonds or oats – plus water, followed by a mix of unnecessary fillers and additives, including oils and gums to artificially enhance texture and frothing capabilities, natural flavours to mask the lack of real, whole-food flavour, and synthetic vitamins to compensate for missing nutrients instead of sourcing them from real food.”

With Kiki Milk, they’re hoping to flip the script. And investors are impressed. “PlantBaby represents the kind of forward-thinking, mission-driven company we look to support at B2 Partners,” said Matt Behrens, founder of B2 Partners. “Their commitment to creating clean, plant-based nutrition solutions aligns perfectly with our belief in backing businesses that prioritize both health and sustainability.”

The financing will allow PlantBaby to further innovate in a space that has bred competition from a growing crop of companies, including Ripple Foods, Califia Farms, Nestlé’s Orgain, and Kiddiwinks.