Firstcry, a kid-focused omnichannel retailer, is reportedly planning to withdraw its draft red herring prospectus (DRHP) filed with the Securities and Exchange Board of India (SEBI) and submit new IPO papers later next week.
According to sources cited by Moneycontrol, the startup intends to resubmit the DRHP with revised financial figures and key performance indicators reflecting the quarter that ended in December 2023.
Earlier, as reported by Reuters, Brainbees Solutions Ltd, the parent company of FirstCry, is set to withdraw its DRHP for a $500 million IPO. This decision comes after the market regulator raised concerns regarding the key metrics disclosed by FirstCry in the draft documents.
According to Moneycontrol, FirstCry had disclosed only 5-6 Key Performance Indicators (KPIs), falling short of the 25 KPIs requested by the markets regulator.
Continue Exploring:Â IPO-bound FirstCry files DRHP, targets INR 1,816 Crore fundraising in fresh issue
In the realm of ecommerce platforms, Key Performance Indicators (KPIs) typically encompass metrics such as the number of orders, average order value, gross order value, annual transacting customers, and various others.
According to the report, SEBI and FirstCry have been in discussions for a month to reach an agreement regarding the KPIs. Sources suggest that the resubmission of the DRHP will postpone FirstCry’s public listing by a few months, with expectations now pointing towards a debut on the bourses in July-August for the ecommerce unicorn.
This development comes at a time when SEBI has intensified its scrutiny of new-age tech companies seeking to list on the bourses.
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This development comes at a time when SEBI has intensified its scrutiny of new-age tech companies seeking to list on the bourses. In 2022, the regulator halted the IPO of Go Digit General Insurance. Subsequently, the insurtech startup resubmitted its DRHP and obtained SEBI’s approval for its IPO just last month.
The funds raised from the IPO will be allocated towards establishing new retail outlets and warehouses, as well as facilitating international expansion efforts.
According to the DRHP, the largest shareholder in the startup is the Japanese investment giant SoftBank, followed by Mahindra & Mahindra and Premji Invest. The draft documents further disclosed that the Pune-based company recorded a consolidated net loss of INR 110.4 Cr in Q1 FY24, contrasting with a net loss of INR 486 Cr for the entire FY23.
Meanwhile, during Q1 FY24, the startup’s operating revenue reached INR 1,406.9 Cr, compared to INR 5,632.5 Cr for the entire FY23.
Continue Exploring: FirstCry CEO Supam Maheshwari sells 6.2 Million shares worth over INR 300 Crore ahead of IPO
