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It could be yeast infection which is a fungus.Most yeast infections are easily treated with an over-the-counter antifungal treatment. Apply the medication directly to the affected skin twice daily for a week. If the rash doesn't go away, or if it recurs frequently, consult your doctor.
Keep the genitals clean and dry to prevent recurence.
It could also be due to an allergy, probably to diaper or some insect bite.You could start him on anti-allergic syrup and see if it subsides.
If there is no improvement in a week's time or ii it is getting worse, check with your paediatrician.