India, April 10 -- Mukesh Rajpurohit who founded children's premium nightwear Mimito six months ago, talks passionately about building a product without compromising on fabric quality. For many brands the fabric cost is a fraction of their Maximum Retail Price and parents end up paying more for marketing costs and channels margins. Mimito targets 3- to 10-year-olds and is committed to natural fabrics -- 100% cotton which is soft and safe for children's skin and not "synthetic shortcuts," Rajpurohit claims. His family's background in apparel ensures strong relationships across the textile supply chain which helps in quality control, he argues.

Start-ups across food, fashion and personal care brands are targeting children with safe and sus...