FirstCry, India’s leading e-commerce platform for mother and baby products, is set to raise $218 million through the sale of new shares in its upcoming initial public offering (IPO). This target amount represents a significant reduction from its original goal of $700 million. In addition to the sale of new shares, some existing investors, including SoftBank, NewQuest, and TPG, are planning to sell their shares as part of the IPO.
According to a person familiar with the matter, FirstCry is now eyeing a valuation of approximately $4 billion, down from its previous target of $6 billion last year. The exact price of the shares has yet to be determined and will be specified in the draft prospectus. Kotak Mahindra Capital, Morgan Stanley, BofA Securities India, and JM Financial have been appointed as book running lead managers for the IPO.
The funds raised through the IPO will be allocated towards various strategic initiatives. These include setting up new stores and warehouses, implementing sales and marketing campaigns, expanding both domestically and overseas, covering technology expenses, and pursuing inorganic growth through acquisitions. FirstCry currently offers over 1 million SKUs from more than 6,800 brands, including popular Indian and international labels, as well as its own home brands like BabyHug and Babyoye.
In addition to its e-commerce operations, FirstCry also operates 180 pre-schools under the brand FirstCry Intellitots throughout India. It has recently expanded its presence overseas by launching online platforms in the UAE and Saudi Arabia. Furthermore, in 2021, the company acquired a majority stake in GlobalBees Brands, enabling it to invest in digital-first brands across various categories beyond mother and baby products.
While FirstCry reported substantial growth in total income, with figures surpassing $688.4 million for the financial year ending March 2023 (compared to $302 million the previous year), its losses also increased significantly. In the same period, the company’s losses reached $58.3 million, compared to $9.4 million a year ago. Nevertheless, FirstCry remains optimistic about its future prospects and intends to leverage the funding from the IPO to further solidify its market position and drive continued growth.