Brainbees Solutions, the parent company of the leading omnichannel retailer for baby and kids products – FirstCry, has taken a significant step towards its initial public offering (IPO) by filing its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The Pune-based unicorn is aiming to raise Rs 1,816 crore through this public offering, which includes both fresh issue of shares and an offer for sale of over 54 million shares.
The IPO will mark a pivotal moment in FirstCry’s journey, as the company was reportedly last valued at under $3 billion in the private market and is now looking to float its public issue at a valuation of around $4 billion. The capital raised will be strategically deployed to establish new retail stores and warehouses, significantly enhancing the company’s reach and operational capabilities. Moreover, FirstCry is setting its sights beyond Indian borders, eyeing international expansion as a part of its growth strategy.
A notable aspect of this IPO is the participation of existing investors and co-founders in the offer for sale. Investors such as the SoftBank Vision Fund, Premji Invest, Mahindra Retail, and TPG Growth will partially offload their holdings. Furthermore, the co-founders of FirstCry, including Supam Maheshwari, Sanket Hattimattur, Amitava Saha, and Prashant Jadhav, will also divest a portion of their stakes.
Talking about the financial trajectory of FirstCry, in the fiscal year 2023, the company’s revenue from operations surged to Rs 5,633 crore, a significant jump from Rs 2,401 crore in the previous year. However, it’s noteworthy that alongside this revenue growth, the net loss reportedly widened from Rs 79 crore to Rs 486 crore, primarily due to increased expenditures in various operational areas, including employee costs, finance charges, and procurement.
FirstCry’s expansive product range, which includes apparel, footwear, baby gear, and personal care items, has been a key driver of its success. With over one million stock-keeping units from more than 6,800 brands, FirstCry has established itself as a comprehensive platform for parenting needs. The company’s robust online presence, coupled with a wide network of modern retail stores, highlights its commitment to providing accessible and high-quality products for children and parents.