FirstCry is looking forward to generating $218 million through the sale of new shares in its initial public offering, which is almost the third of the $700 million proposed by the company’s owners. The company has made its way to the market as it is highly specialized in selling products for kids and mothers across different online platforms as well as in physical stores. SoftBank has backed the company to conduct this first IPO in India. Although the targeted revenue was very high in the former prospects, the company is looking forward to engaging the audience with its tremendous products.
Background of FirstCry
FirstCry was founded back in 2010, and it plans to use the IPO to proceed towards setting up new stores, warehouses, sales and marketing initiatives, and investments in overseas and domestic expansion. The company offers more than 1 million SKUs from the enormous figure of 6,800 brands. Among them, several top-quality names come, including the ones owned by FirstCry itself, like BabyHug, Babyoye, and many others. In 2022, the company paused its $1 billion IPO plan because of the extreme volatility in the market. However, SoftBank has backed up this enterprise now, and it has conducted a successful IPO campaign in India to gran $218 million in revenue.
IPO Details
As described previously, the IPO was canceled last year. Therefore, the company conducted a new Indian IPO, and its size was almost half of the one proposed originally. Previously, the company has planned to generate almost $700 million if they sustain the original size. However, the market volatility has made them reduce the overall IPO. Consequently, FirstCry faced a significant cut in its total revenue, which is now $218 million.
Additionally, SoftBank has assisted the company in carrying out its initial public offering in India. Brainbees Solutions, which is the parent company of FirstCry, has stated that some investors, including the likes of Softbank, NewQuest, and TPG, are likely to sell their shares to become part of the IPO of India’s largest e-commerce marketplace for online baby and women’s products. It will evaluate the company’s worth to up to $4 billion, below the previous $6 billion.
Future Prospects
The successful Indian IPO has made FirstCry the biggest platform to sell online baby products. The company has already revealed that it has gained a significant boost in total earnings which increased from $302 million to $688.4 million. Although the total losses also have touched the mark of $58.3 million from the last of $9.4 million a year ago, the company is actively looking to modify its strategies to become the best. Further, the IPO has played a primary part in boosting the success. The draft red herring prospectus (DRHP) is expected to be filed by December 29, while the listing will take place after the general elections of 2024.
