FirstCry refiles IPO papers, reports December revenue at Rs 4,814 crore

Brainbees Solutions, the parent firm of retailer FirstCry, has refiled its draft initial public offering (IPO) papers with the Securities and Exchange Board of India (Sebi), days after the markets regulator told the firm to come up with additional clarity on some key performance metrics.

According to the updated draft red herring prospectus (DRHP), the Pune-based unicorn’s IPO size remains the same at Rs 1,816 crore, with an offer for sale (OFS) of more than 54 million equity shares from existing investors.

It had filed its DRHP in December last year. But the markets regulator raised questions over key metrics it disclosed to investors.

FirstCry’s Key Performance Indicators (KPIs) include its average order value, annual transacting customers and number of orders.

For the nine months ending December 2023, the Pune-based firm recorded an operating revenue of Rs 4,814 crore with a net loss of Rs 278 crore, its updated DRHP showed.

FirstCry raked in Rs 5,650 crore as gross sales during the period. Around 77 per cent of its total sales come from online channels, with the rest through offline retail stores.

The startup’s biggest expense continues to be its procurement cost, which stood at Rs 3,108 crore, accounting for around 60 per cent of its total expenses in the first three quarters of FY24. 

The company’s investors include the likes of SoftBank, TPG and India’s Mahindra and Mahindra, among others.

As of its most recent funding round, FirstCry was valued at under $3 billion. The company is expected to price its IPO at a valuation of nearly $4 billion.

The Supam Maheshwari-led company will use the money primarily to set up modern stores and a warehouse, and to make lease payments for the stores it runs in the country. 

It will also use the funds to invest in its subsidiaries FirstCry Trading and GlobalBees Brands, and to make acquisitions and other strategic initiatives as well, Business Standard had reported earlier.

The FirstCry platform was launched in India in 2010 to create a one-stop destination for parenting needs across commerce, content, and community engagement. 

The multi-channel retailing platform includes FirstCry’s online platform accessible through the mobile application and website. This includes FirstCry modern stores comprising franchisee-owned and operated modern stores, and company-owned and operated modern stores as well as general trade retail distribution.

The company offers products in categories such as apparel, footwear, baby gear, nursery, diapers, toys, and personal care. As on June 30, 2023, it offered more than one million stock keeping units from over 6,800 brands.

It has a network of 936 FirstCry and BabyHug modern stores in 465 cities in 27 states and four Union Territories.

FirstCry’s revenue from operations jumped to Rs 5,632 crore during FY23 as against Rs 2,401 crore in FY22, according to Entrackr.

Income from sales of products accounted for 98 per cent of the operating revenue, which surged 2.37 times to Rs 5,519 crore in FY23. The losses for the SoftBank-backed firm went up 6.15 times to Rs 486 crore in FY23 as compared to Rs 79 crore in FY22.