FirstCry, India’s largest e-commerce platform for mother and baby products, is set to raise $218 million through the sale of new shares in its initial public offering (IPO). This amount is a significant decrease from the initial target of $700 million. The parent company, Brainbees Solutions, revealed in a draft prospectus filed with the local market regulator that several investors, including SoftBank, NewQuest, and TPG, intend to sell some shares as part of the IPO.
Key Takeaway
FirstCry, the leading e-commerce platform for mother and baby products in India, is planning to raise $218 million through an IPO, with a revised valuation target of $4 billion. The funds raised will be allocated towards various business initiatives, including expansion, technology investments, and inorganic growth.
Target Valuation and IPO Details
The startup aims for a valuation of about $4 billion, down from its previous target of $6 billion last year. The price has not been set yet, as stated in the draft prospectus. The book running lead managers appointed for the IPO include Kotak Mahindra Capital, Morgan Stanley, BofA Securities India, and JM Financial.
Utilization of IPO Proceeds
Established in 2010, FirstCry plans to utilize the IPO proceeds for various purposes, including setting up new stores and warehouses, sales and marketing initiatives, investments in overseas and domestic expansion, technology costs, and inorganic growth through acquisitions. The platform offers over 1 million SKUs from more than 6,800 brands, including major third-party Indian and international brands, as well as its own home brands such as BabyHug and Babyoye.
Expansion and Financial Performance
In addition to its e-commerce operations, the company also operates 180 pre-schools under the brand FirstCry Intellitots across India. It has expanded its presence overseas by launching online platforms in the UAE and Saudi Arabia. Moreover, the acquisition of a majority stake in GlobalBees Brands in 2021 has enabled investments in digital-first brands across various categories beyond mother and baby products.
FirstCry reported a significant increase in total income to $688.4 million in the financial year ending March 2023, compared to $302 million from the previous year. However, its losses also grew to $58.3 million in the financial year ending March this year, up from $9.4 million from the previous year.
