In a strategic move, Japanese tech investor SoftBank has reportedly divested a portion of its stake in FirstCry for a sum of INR 630 Crores (approximately $75 Million). The shares were reportedly acquired by a select group of high-net-worth individuals (HNIs), pegging the valuation of the e-commerce unicorn at an impressive $3.5 Billion to $3.75 Billion.
According to sources cited by news agency PTI, SoftBank’s recent stake sale in FirstCry amounted to INR 630 Crores, contributing to a total realization of $310 Million from two rounds of stake sales in the company. Another source familiar with the matter mentioned that SoftBank still retains shares valued between $800 Million and $900 Million in FirstCry, which the tech investor plans to sell at a later date.
It is noteworthy that SoftBank had previously invested around $400 Million in FirstCry at an enterprise valuation of $900 Million. The recent stake sales align with SoftBank’s strategy to reduce its stake below the 26% mark, ensuring it is not classified as a promoter of FirstCry.
Earlier this year, notable entities such as Ranjan Pai’s Manipal Education and Medical Group family office, Harsh Mariwala’s investment office Sharrp Ventures, and the DSP family office of Hemendra Kothari had acquired stakes in FirstCry for approximately INR 435 Crores from SoftBank.
The move comes as FirstCry gears up to file its draft red herring prospectus (DRHP) before December 29, in preparation for its upcoming initial public offering (IPO). With aspirations to raise between $500 Million and $600 Million through the IPO, the company is eyeing a valuation of $4 Billion during the public offering.
Founded in 2010 by Supam Maheshwari and Amitava Saha, FirstCry operates as an omnichannel marketplace specializing in kids and baby products.
Despite the anticipation surrounding its IPO, FirstCry reported a net loss of INR 78.7 Crores in the financial year 2021-22 (FY22), contrasting with a profit of INR 216 Crores in FY21.
The IPO plans have been in motion for some time, with FirstCry converting into a public company last year. However, market volatility and a downturn in share prices of listed new-age tech companies had previously hindered the company’s listing plans.
If successful, FirstCry will join Nykaa as the second new-age Indian vertical e-commerce major to go public.
