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FirstCry, Supported by SoftBank, Aims $220 M in Indian IPO

A Revised IPO Target
India’s premier e-commerce hub for mother and baby essentials, FirstCry, is gearing up for a significant financial move. Originally targeting a whopping $700 million, the company now sets its sights on raising $218 million through its upcoming initial public offering. This revised figure represents a significant reduction, nearly a third of its initial ambition.

Key Stakeholders on Board
In a recent development, Brainbees Solutions, the overarching entity behind FirstCry, disclosed in its draft prospectus to the local market regulator that major investors such as SoftBank, NewQuest, and TPG are contemplating the sale of some of their shares during the IPO.

Valuation Adjustments
Sources close to the matter reveal that FirstCry is pursuing a valuation around the $4 billion mark. This figure marks a decrease from its earlier valuation target of $6 billion in the preceding year. The startup has refrained from specifying its pricing details in the preliminary prospectus. Spearheading the IPO are book running lead managers including notable names like Kotak Mahindra Capital, Morgan Stanley, BofA Securities India, and JM Financial.

Investment and Expansion Strategies
Established in 2010, FirstCry envisions utilizing the IPO’s proceeds for a myriad of purposes. These include the establishment of fresh outlets and warehouses, bolstering sales and marketing campaigns, domestic and international expansion endeavors, technological enhancements, and potential acquisitions. Boasting an expansive portfolio, FirstCry’s offerings encompass over 1 million SKUs from a vast array of more than 6,800 brands. This includes a mix of esteemed third-party brands, both Indian and international, as well as FirstCry’s proprietary labels like BabyHug and Babyoye.

Moreover, beyond its e-commerce prowess, FirstCry’s footprint extends to the educational sector. The startup oversees 180 preschools, branded as FirstCry Intellitots, spanning various regions in India. Venturing into international territories, Brainbees has successfully launched FirstCry’s digital platforms in the UAE and Saudi Arabia. A noteworthy acquisition in 2021 saw Brainbees securing a majority stake in GlobalBees Brands, signaling its intent to invest in digital-centric brands across a diverse range of categories.

Financial Performance Snapshot
Recent financial disclosures shed light on FirstCry’s robust performance. The company witnessed a commendable surge in its total income, soaring to $688.4 million in the fiscal year concluding in March 2023. This figure marks a significant rise from the $302 million reported during the corresponding period the prior year. However, the same financial period also recorded a surge in losses, escalating to $58.3 million, a stark contrast from the $9.4 million loss reported a year earlier.

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