Case Study
Case Study
2025-11-19

How DYPER Scaled Its Plant-Based Diaper Brand with Flexible, Performance-Based Capital

Clearco

Problem: DYPER needed flexible capital to fuel aggressive growth in the competitive baby care market while scaling its sustainable diaper manufacturing and expanding its direct-to-consumer ecommerce platform. Traditional funding options risked equity dilution, while many alternative lenders offered “flexible” models that in reality came with rigid repayment terms, narrow use cases, or caps that could have constrained DYPER’s momentum at a critical growth phase.

Solution: Clearco’s revenue-based finance provided non-dilutive capital tied to DYPER’s ecommerce performance, enabling rapid scaling without sacrificing ownership or control of their mission-driven brand.

The Sustainable Diaper Dilemma

When DYPER's CEO Giusy Buonfantino took the helm of the plant-based diaper company, she brought formidable expertise from her years as Global Chief Marketing Officer at Kimberly-Clark, where she led brands like Huggies, and her executive roles at Johnson & Johnson overseeing Neutrogena and Aveeno. Now she inherited a founder's ambitious vision: change an industry dominated by the very plastic-heavy giants she once worked for. The challenge was daunting – babies use 2,500 diapers annually, with traditional options taking up to 500 years to decompose in landfills.

“Our mission is plants over plastic for happy babies,” Buonfantino explains.

Scaling a sustainable product in the $78 billion diaper market required significant capital investment. The friction was real: DYPER’s diapers, made with 55% plant-based materials and clinically tested for sensitive skin, commanded premium pricing in a cost-conscious category. The company needed to balance rapid growth with cash flow management across their DTC ecommerce website while maintaining their commitment to sustainability.

Traditional venture funding posed a dilemma; equity dilution could compromise the founder’s vision and long-term control over their mission-driven brand. For a company pioneering the REDYPER composting service and claiming to have diverted 15 million tons of dirty diapers from landfills, maintaining strategic autonomy was imperative.

Finding a Growth Partner That Gets DTC

Enter Clearco. Buonfantino discovered revenue-based finance as the perfect solution for ecomm brands like DYPER that generate consistent online revenue but need flexible capital without equity sacrifice.

“I always thought about funding as a partner, so I was looking for a partner that could support our growth, not just once but in the years to come, and I found this in Clearco,” Buonfantino explains. “The second aspect is the flexibility of the product and the speed of execution which is amazing.”

DYPER wasn’t built to fit the traditional funding mold and neither is Clearco. Instead of requiring personal guarantees or equity, Clearco advanced capital based on DYPER’s actual ecommerce performance. Remittances came from a fixed percentage of future revenue, flexing up or down with sales. No dilution. No fixed payments. Just capital that adapts to how DTC brands actually grow.

Scaling Without Sacrifice

DYPER used Clearco’s capital to drive both near term growth and long term scale. With flexible funding, the team accelerated ecommerce site optimization, expanded their subscription program (which automatically saves customers 15%), and invested in performance marketing that highlighted their sustainable value proposition.

The cash flow flexibility became a strategic advantage, allowing DYPER to invest aggressively during peak subscription periods while maintaining operational stability during slower cycles.

Customer satisfaction metrics validated the strategy. Parents consistently rate DYPER five stars, with testimonials like, “I’ve been using DYPERs and  will never purchase a diaper rash cream again.” This performance-driven approach enabled DYPER to justify premium pricing – they’re one of the most expensive diapers on the market, yet maintain strong customer loyalty.

The revenue-based finance model supported DYPER’s expansion beyond diapers into wide range baby care, including training pants and wipes. Most importantly, it enabled scaling their innovative REDYPER program, which picks up used diapers for commercial composting – the first service of its kind in North America.

Today, DYPER continues growing as a B Corp Certified company available across major retailers while preserving their DTC foundation. The Clearco partnership provided exactly what Buonfantino sought for her customers:

“Flexibility in paying for monthly subscription, flexibility of returning leftover diapers if, of course, the box is closed, and flexibility of loyalty points.”
Ecommerce
Health & Wellness
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