FirstCry, a prominent e-commerce platform focused on mother and child care, is gearing up to potentially file a draft paper for its IPO, anticipating a substantial valuation. In its financials for FY23, the company recorded significant revenue growth, reaching Rs 5,632 crore from operations, marking a notable 2.4 times increase compared to the previous year.
However, amidst this impressive revenue surge, FirstCry faced mounting losses, which skyrocketed over sixfold from Rs 79 crore in FY22 to Rs 486 crore in FY23. The majority of its operating revenue, accounting for 98%, stemmed from the sale of products, amounting to Rs 5,519 crore, according to documents submitted to the Registrar of Companies.
As it readies itself for a public listing, FirstCry aims to raise between $500-600 million at an expected valuation of $4 billion. This move aligns with its efforts to expand its operations and capitalize on market opportunities.
Simultaneously, reports suggest that SoftBank, a major investor backing FirstCry, has reportedly sold shares worth $310 million in a secondary round sale involving FirstCry. This latest sale totaled approximately Rs 630 crore. Combining this with a previous stock sale, SoftBank has divested shares worth $310 million in two separate transactions. Initially, SoftBank had invested $400 million in FirstCry when the company was valued at around $900 million.
According to sources cited in an earlier MoneyControl report, FirstCry is looking to raise $500 million, with a significant portion, around 60%, allocated for the offer for sale (OFS) component, while the remaining funds will be directed to the primary segment, enabling potential expansion and consolidation of its market presence.
(With Agency Inputs)
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