FirstCry, India’s largest e-commerce platform for maternal and infant products, plans to raise US$218 million through an initial public offering of new shares, almost one-third of its original target of US$700 million.
Brainbees Solutions, the parent company of online baby products marketplace FirstCry, wrote in a draft prospectus filed with local market regulators that some investors, including SoftBank, NewQuest and TPG, plan to sell some of their shares in the IPO.
The startup is valued at about $4 billion, down from last year’s target of $6 billion, according to people familiar with the matter. FirstCry said it has not yet set a price in its draft prospectus. The appointed lead managers for the IPO include Kotak Mahindra Capital, Morgan Stanley, BofA Securities India and JM Financial.
FirstCry, founded in 2010, plans to use the proceeds from the IPO for expenses such as the establishment of new stores and warehouses, sales and marketing plans, investment 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 Indian and international third-party brands as well as FirstCry’s own local brands such as BabyHug, Babyoye, etc. \
Details of shareholders holding at least 1% of FirstCry shares as of Thursday. (Disclosure: FirstCry DRHP)
The startup also operates 180 kindergartens across India under the FirstCry Intellitots brand. Brainbees has also expanded overseas by launching the FirstCry online platform in the United Arab Emirates and Saudi Arabia. It also acquired a majority stake in GlobalBees Brands in 2021 to invest in digital-first brands across categories beyond MBK.
FirstCry reported that its total revenue more than doubled to $688.4 million in the fiscal year ending March 2023, up from $302 million in the same period a year earlier. Its losses surged to $58.3 million in the year ended March from $9.4 million a year ago.
