After months of speculation, Brainbees Solutions Limited, the parent company of the popular kids-focused ecommerce platform FirstCry, has officially filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The document sheds light on the company’s plans for its initial public offering (IPO), which includes a fresh issue of shares amounting to INR 1,816 Cr and an offer-for-sale (OFS) component.
SoftBank, the largest shareholder, is set to offload a significant portion of shares, along with other stakeholders like Mahindra & Mahindra, Premji Invest, TPG, Apricot Investments, and NewQuest. The IPO will also include a pre-IPO private placement of equity shares, aiming to raise up to INR 363 Cr.
Where FirstCry’s IPO Proceeds Will Be Allocated:
- New Retail Stores and Warehouses: FirstCry plans to invest INR 648 Cr to establish modern stores and warehouses and make lease payments for existing stores.
- International Expansion: The startup earmarks INR 155.6 Cr for its foreign subsidiary, intending to set up modern stores in Saudi Arabia.
- Globalbees Brands: An investment of INR 170.5 Cr in subsidiary Globalbees Brands to acquire additional stakes in the company’s indirect subsidiaries.
- Sales and Marketing Initiatives: INR 100 Cr has been allocated for strategic sales and marketing initiatives.
- Technology and Data Science: FirstCry plans to invest INR 57.6 Cr in technology and data science advancements.
The remaining IPO proceeds will be channeled towards inorganic growth and other corporate purposes, as outlined in the DRHP.
Despite recording a net loss of over 500% in FY23 and a net loss of INR 110.4 Cr in Q1 of FY24, FirstCry’s robust sales growth in FY23, reaching INR 5,632.5 Cr, showcases the platform’s market presence and potential.
