FirstCry, the SoftBank-backed ecommerce unicorn specializing in baby and kids’ products, is gearing up to enter the IPO market by filing its draft red herring prospectus (DRHP) by the end of December. The company is targeting to raise between $500 million and $600 million from the initial public offering.
Although the final valuation is yet to be confirmed, sources suggest that FirstCry could be valued at approximately $4 billion during the IPO. Insiders familiar with the matter stated that the draft red herring prospectus is likely to be submitted to the Securities and Exchange Board of India (SEBI) before December 29. The anticipated listing is expected to occur post the general elections.
Founded in 2010 by Supam Maheshwari and Amitava Saha, FirstCry has transformed into an omnichannel baby and kids’ marketplace. The startup underwent conversion into a public company last year. In April of the same year, reports indicated that FirstCry intended to file its IPO papers within a month, aiming to raise $700 million and seeking a valuation of at least $6 billion. However, the plans were likely postponed due to uncertain market conditions and a downturn in the share prices of newly listed tech companies.
If the IPO proceeds as planned, FirstCry will become the second new-age vertical ecommerce major to go public, following Nykaa.
Earlier this year, three family investment offices, including Manipal Group’s MEMG Family Office, Marico’s Harsh Mariwala’s investment office Sharrp Ventures, and DSP family office of Hemendra Kothari, acquired stakes in FirstCry for about INR 435 crore from SoftBank. The move was part of SoftBank’s strategy to reduce its stake to below 26%, preventing classification as a promoter of FirstCry.
The IPO landscape in 2024 is expected to be vibrant, with at least 10 startups, including Ola Electric and Swiggy, also considering going public.
Despite reporting a profit in FY21, FirstCry experienced a net loss of INR 78.7 crore in FY22.
