SoftBank Vision Fund, the largest shareholder in IPO-bound omnichannel retailer FirstCry, has divested more shares, opening the door for additional family offices and individuals to acquire a stake in the firm.
The family offices of Indian cricketer Sachin Tendulkar, Ravi Modi from the ethnic wear brand Manyavar, Kris Gopalakrishnan, the co-founder of Infosys, and the TVS group family are reportedly among the investors acquiring shares in the company, according to knowledgeable sources.
This brings the cumulative value of the secondary share sale for FirstCry, leading up to next year’s anticipated public listing, to over INR 1,000 crore.
Out of the overall amount, SoftBank has reportedly divested shares worth approximately INR 600 crore, reducing its ownership in the company to below 25%, according to individuals familiar with the matter. The technology investor, led by Masayoshi Son, has gradually decreased its stake from around 29-30% over the past couple of years. On December 19, it was reported that FirstCry is poised to submit its draft IPO papers soon. The company is targeting a fundraising goal of $500-600 million through its upcoming public offering.
Continue Exploring: FirstCry plans to launch IPO, aims for a $500-600 Million funding round
On August 21, it was reported that shares of FirstCry were acquired by three family offices: Ranjan Pai from Manipal Group, Sharrp Ventures, the investment office of Harsh Mariwala from Marico, and the DSP family office belonging to Hemendra Kothari.
Sources familiar with the matter indicate that SoftBank has invested approximately $400 million in the firm and has already garnered close to $300 million in returns. SoftBank’s first investment in FirstCry took place in 2020.
“The remaining stake could still be valued at $1 billion if it lists at a valuation of $ 4 billion or more,” a person aware of the matter said.
While FirstCry has not officially disclosed its IPO valuation, insiders suggest that it might fall within the $4 billion range. In its latest valuation, the company was appraised at just under $3 billion.
FirstCry and SoftBank declined to comment.
In a secondary share sale, current investors sell all or part of their holdings to new investors, and the proceeds do not contribute to the company’s funds. In contrast, a primary share sale involves issuing new shares, enabling the company to raise capital. FirstCry’s anticipated $500 million IPO is projected to include 35-37% of the offer through a primary share sale, with the remaining portion allocated to the secondary sale, also known as an offer for sale (OFS).
The newly acquired investors are becoming part of FirstCry’s capital table, alongside existing entities such as Premji Invest, the family office of Wipro founder Azim Premji, the Mahindra group, and other stakeholders.
Following Nykaa’s IPO in 2021, FirstCry is set to become the second Indian vertical e-commerce platform to go public. Headquartered in Pune, the company specializes in retailing products catering to children and mothers through both online and offline channels. With a nearing milestone of 1,000 retail stores in India, FirstCry also operates a subsidiary, Globalbees, focused on e-commerce consolidation.
FirstCry was established in 2010 by Supam Maheshwari, Sanket Hattimattur, Amitava Saha, and Prashant Jadhav. Maheshwari and Hattimattur serve on the company’s board, while Saha oversees Xpressbees, a logistics firm that originated from the e-commerce company. Nitin Agarwal holds the position of Chief Executive at Globalbees.