FirstCry plans to raise $700 million in the Upcoming IPO
Based on multiple sources, FirstCry.com, an eCommerce company specializing in baby products headquartered in India, intends to launch an initial public offering (IPO) this month that could raise up to $700 million.
The online baby products marketplace is reported to be seeking a valuation of $6 billion or more. Shares could be issued from existing and new shares. The listing is likely to occur this year.
From clothing to other essentials, FirstCry offers a wide range of baby and kids products. The company was founded in 2010 by Supam Maheshwari and Amitava Saha. Besides having an online lead in its presence, the startup boasts of having more than 300 stores in 125 cities.
The startup, based in Pune, says it offers 200K baby and children’s products from around 2,000 brands. The company has secured investments from TPG, SoftBank Group Corp., and PremjiInvest, a family office linked to Wipro founder Azim Premji.
SoftBank raised $296 Mn for FirstCry in its Series E round in 2020, giving the company membership in the unicorn club. Additionally, FirstCry is a shareholder in GlobalBees, which went public in December valued at $1.1 billion after a $110 million Series B round of fundraising in order to expand its digital-first business portfolio.
More Details on FirstCry’s IPO
According to the latest company filings with the U.S. Securities and Exchange Commission (SEC), the Texas-based private equity firm TPG-backed baby & kids marketplace, led by founder Supam Maheswari, FirstCry had a landmark financial year ending March 31, 2021 (FY 20-21).
In the previous financial year, revenue was INR 896.7 Cr.
This year, it was INR 1,740 Cr. That’s a 141.3% jump. News outlets report that the Pune-based e-commerce startup has racked up a profit after tax of INR 215.94 Cr in FY21, up sharply from INR 190.8 Cr of losses it suffered in FY20. The shift to online shopping was accelerated by the pandemic, causing the company to reverse its losses.
National Investment & Infrastructure Fund (NIIF), India’s sovereign fund, canceled its investment in an eCommerce startup a few days back. SoftBank’s shares in FirstCry were supposed to be purchased by NIIF. A stake of $2.7 billion to $3 billion is expected to be purchased from Premji Invest now.
In view of several other reports, considerations of the IPO, including size and timing, are still ongoing. Details of the IPO, including size and timing, could change at any time. An official announcement from FirstCry has yet to be made on the subject.
Future Ahead for FirstCry
A possible frontrunner would be FirstCry, launching an IPO for the baby market. Supam Maheshwari’s kids’ product marketplace will receive $100 Mn from NIIF in February 2022.
SoftBank still owns 30% of the company, although it has sold off a portion of its shares. Approximately INR 1.7 Tn in sales are expected to be generated by the kid’s wear segment by 2028, as per Statista.
It has been a successful planning process for the company’s IPO debut. A number of companies have already invested in this venture, including Kotak Mahindra and Morgan Stanley.