SoftBank-backed omnichannel retail startup FirstCry has formally lodged its draft red herring prospectus (DRHP) with the market regulator SEBI, aiming to secure INR 1,816 Crore through fresh share issuances.
The IPO offer also includes an offer-for-sale component, enabling the startup’s investors to offload up to 5.4 Crore equity shares.
Continue Exploring: IPO-bound FirstCry files DRHP, targets INR 1,816 Crore fundraising in fresh issue
Discussing the financials of the startup, Brainbees Solutions Limited has disclosed sales of INR 1,406.9 Crore on a consolidated basis in the initial three months of the current financial year, FY24. The ecommerce unicorn primarily generates revenue by selling babycare products on its platform. Taking into account other income, FirstCry’s total income in Q1 of FY24 amounted to INR 1,426.8 Crore.
The sales for the initial three months constitute nearly 25% of the startup’s total FY23 sales. In FY23, FirstCry achieved a consolidated operating revenue of INR 56,32.5 Crore, reflecting a remarkable 135% surge from the INR 2,401.2 Crore reported in the preceding fiscal year.
Incorporating additional income, the overall income reached INR 5,731.2 Crore in FY23, marking a surge of 127.7% from the INR 2,516.9 Crore recorded in FY22.
During the first quarter of FY24, FirstCry recorded a net loss of INR 110.4 Crore. The startup reported a consolidated net loss of INR 486 Crore in the financial year 2022-23 (FY23), indicating a substantial 518% increase from the INR 78.6 Crore in the preceding fiscal year.
In the first quarter of FY24, the startup disclosed total expenses amounting to INR 1,541.8 Crore. In the preceding fiscal year, the startup’s total expenditure reached INR 6,315.6 Crore, indicating a substantial 145% increase from the INR 2,568 Crore in FY22.
As a marketplace, FirstCry allocated INR 904.4 Crore for product procurement, constituting nearly 59% of the startup’s total expenditure in the first quarter. In FY23, the startup’s procurement expenditure amounted to INR 3,953.3 Crore, reflecting a substantial 150% increase from the INR 1,572.1 Crore spent in FY22.
In the first quarter of FY24, the startup spent INR 159.2 Crore on employee benefit expenses, including INR 45.2 Crore for ESOP expenses. In FY23, FirstCry incurred INR 769.8 Crore for employee benefit expenses, reflecting a significant 127% increase from the INR 338.8 Crore spent in FY22.
FirstCry allocated £164.5 million in expenditure during Q1 FY24, constituting nearly 10% of the startup’s revenue for the same period. In FY23, the startup’s spending escalated to £416.4 million, reflecting a 55% increase from the £268.6 million spent in the previous fiscal year.
FirstCry’s initial public offering (IPO) features an offer-for-sale component. This offer encompasses an offer-for-sale (OFS) segment involving 5.4 crore equity shares. SoftBank from Japan, holding a stake of over 25%, plans to sell the highest volume, with up to 2 crore equity shares, while Premji Invest aims to sell 8.6 million shares during the OFS. Additionally, founder Supam Maheshwari will divest some of his shares in the IPO, noteworthy is that Maheshwari is not partaking in the sale of shares in the OFS.
At present, the startup possesses 321 contemporary stores and 615 stores operated under franchise ownership throughout the country.
In December of this year, FirstCry joined the ranks as the third Indian startup to submit its draft papers. Earlier in the same month, co-living workspace Awfis filed its draft red herring prospectus (DRHP) to generate INR 160 crore through fresh issues. Additionally, Bhavish Aggarwal’s Ola Electric is aiming to raise INR 5,500 crore through the public markets.