IPO-bound omnichannel retailer FirstCry witnessed a fivefold increase in its net loss during the financial year concluding on March 31, 2023. The Mumbai-based startup recorded a consolidated net loss of INR 486 Crores in the previous fiscal year 2022-23 (FY23), marking a 518% surge from INR 78.6 Crores in the fiscal year before.
It’s worth mentioning that the startup had reported a net profit of INR 215.9 Crores in FY21.
FirstCry’s consolidated financials encompass the financial performance of its 38 subsidiaries, including Globalbees.
Established in 2010 by Supam Maheshwari and Amitava Saha, FirstCry is an omnichannel marketplace specializing in baby and kids products. The startup transitioned into a public company last year, marking the initial phase of its path towards being listed on the stock exchanges.
Meanwhile, the startup’s sales crossed the INR 5,000 Crore mark during the year under review. Operating revenue rose by 135% to INR 5,632.5 Crores in FY23 from INR 2,401.2 Crores in the previous fiscal year. It primarily earns revenue from the sale of baby care products.
Incorporating other income, the total income amounted to INR 5,731.2 Crores in FY23, marking a substantial increase of 127.7% from INR 2,516.9 Crores in FY22.
In FY23, FirstCry disclosed a total expenditure of INR 6,315.6 Crores, reflecting a surge of 146% compared to INR 2,568 Crores in FY22.
As an e-commerce marketplace, FirstCry’s major expenditure was attributed to its procurement cost. In FY23, the startup allocated INR 3,953.3 Crores to restock its shelves, marking a substantial 150% increase from INR 1,572.1 Crores in FY22.
FirstCry allocated INR 769.8 Crores for staff salaries, gratuity, PF, and other employee welfare benefits, marking a substantial 127% rise from INR 338.8 Crores in the preceding year. The notable increase indicates that the startup expanded its workforce during the layoff season. Interestingly, it disbursed INR 361.4 Crores on ESOPs, experiencing a remarkable surge of 292% from INR 92.1 Crores in FY22.
It witnessed a sharp increase in its transportation cost for the year under review. In FY23, the startup spent INR 429.2 Crores on transportation costs, reflecting a significant 604% increase from INR 61 Crores in the previous fiscal year.
Advertising costs surged by 55% to INR 416.4 Crores in FY23, compared to INR 268.6 Crores in FY22.
FirstCry’s EBITDA margin declined to -2.9% from 4.05% in FY22.
Maheshwari-led startup, backed by significant funding rounds totaling over $700 million and supported by investors including SoftBank, Chrys Capital, and Vertex Ventures, is poised to submit its draft red herring prospectus (DRHP) by the end of the month.’
According to media reports, FirstCry is seeking to secure $500 million to $600 million through its IPO, with a targeted valuation of $4 billion.
Continue Exploring: FirstCry plans to launch IPO, aims for a $500-600 Million funding round
A few months ago, three family investment offices – MEMG Family Office led by Ranjan Pai of Manipal Group, Sharrp Ventures of Harsh Mariwala from Marico, and the DSP family office of Hemendra Kothari – acquired stakes in the startup for approximately INR 435 Crores in a secondary round facilitated by SoftBank.
