E-commerce startup FirstCry is seeking to raise $218 million through issue of fresh shares in its initial public offering, the 13-year-old startup said in a draft prospectus filed with the market regulator Thursday, becoming the latest Indian startup to explore the public markets.
FirstCry earlier sought to raise as much as $700 million in its Mumbai IPO, but deterred the plan as the market conditions worsened.
Brainbees Solutions, the parent firm of online baby product marketplace FirstCry, said that some investors including SoftBank. NewQuest and TPG plan to sell some shares. The startup is eyeing a valuation of about $4 billion, down from previous $6 billion ambitions, according to a person familiar with the matter. FirstCry said it hadn’t set the price in its draft prospectus. The book running lead managers appointed for the IPO include Kotak Mahindra Capital, Morgan Stanley, BofA Securities India, and JM Financial.
Founded in 2010, FirstCry plans to use the IPO proceeds towards expenditure for setting up new stores and warehouses, sales and marketing initiatives, investments in overseas and domestic expansion, technology costs, and inorganic growth through acquisitions. FirstCry offers over 1 million SKUs from over 6,800 brands. This includes major third-party Indian and international brands as well as FirstCry’s own home brands such as BabyHug, Babyoye and others.
The startup also operates 180 pre-schools under the brand FirstCry Intellitots across India. Brainbees has also expanded overseas by launching FirstCry online platforms in UAE and Saudi Arabia. It also acquired a majority stake in GlobalBees Brands in 2021 to make investments in digital-first brands across categories beyond MBK.
The startup reported more than doubling its total income to $688.4 million in the financial year ending March 2023, up from $302 million from the same period a year ago. In the financial year ending March this year, its losses had ballooned to $58.3 million, from $9.4 million from a year ago.
More to follow.