FirstCry, India’s largest e-commerce platform specializing in mother and baby products, aims to generate $218 million through the issuance of new shares in its upcoming initial public offering (IPO). This target represents almost a third of the originally envisioned $700 million. Brainbees Solutions, the parent company of the online baby product marketplace, disclosed in a preliminary prospectus submitted to the local market regulator that certain investors, including SoftBank, NewQuest, and TPG, intend to sell some of their shares as part of the IPO.
The startup is targeting a valuation of approximately $4 billion, a decrease from its initial $6 billion goal set the previous year, according to a source familiar with the matter. FirstCry has not yet determined the pricing, as indicated in its draft prospectus. The book-running lead managers for the IPO include Kotak Mahindra Capital, Morgan Stanley, BofA Securities India, and JM Financial.
Established in 2010, FirstCry plans to utilize the IPO proceeds for various purposes, including the establishment of new stores and warehouses, funding sales and marketing initiatives, investments in both domestic and overseas expansion, covering technology expenses, and facilitating inorganic growth through acquisitions. FirstCry boasts a diverse offering of over 1 million SKUs from more than 6,800 brands, encompassing major third-party Indian and international brands, along with its proprietary home brands like BabyHug and Babyoye.
The startup also manages 180 pre-schools under the FirstCry Intellitots brand across India. Expanding its global presence, Brainbees has launched FirstCry online platforms in the UAE and Saudi Arabia and acquired a majority stake in GlobalBees in 2021.
FirstCry’s financial performance for the fiscal year ending March 2023 showcased a notable increase in total income, surging to $688.4 million from $302 million in the corresponding period a year earlier. However, the company reported increased losses for the fiscal year ending March this year, reaching $58.3 million, up from $9.4 million a year ago.
