(Adds estimate on transaction volume)
FRANKFURT, Feb 5 (Reuters) - German baby products retailer windeln.de is preparing a stock market listing to tap funds for further expansion, three sources familiar with the deal said.
Windeln.de sees potential for growth in Germany, where so far only one in five childcare products is sold via the internet. It also wants to enter markets in other countries and make acquisitions.
The retailer, which sells diapers, baby food, children's clothing and toys, may be valued at 300-400 million euros ($342-457 mln) in a potential listing, two of the sources said.
The group has mandated Deutsche Bank, Goldman Sachs and Bank of America Merrill Lynch to organise the initial public offering (IPO), which could take place in the first half of 2015, the sources said.
"We are continuously evaluating all strategic options to support the future growth of the company," said a spokesman for windeln.de, which was set up in 2010 and last year made a small profit on sales of 130 million euros ($149 million).
The banks declined to comment.
Last month, windeln.de closed a financing round in which Goldman Sachs, Deutsche Bank, DN Capital, MCI Management and 360 Capital Partners injected a total of 45 million euros into the group.
German magazine Bilanz reported earlier on Thursday that windeln.de is seeking a listing by the end of June.
$1 = 0.8761 euros Reporting by Arno Schuetze; Editing by Vincent Baby and Elaine Hardcastle