A Consortium of Private Equity Investors Pump $315 Million into FirstCry
A consortium of private equity investors including TPG, Chrys Capital, and Premji Invest, has invested around $315 million into FirstCry, valuing the omni-channel children’s retailer at around $1.9-$2.1 billion. All three private equity investors have roughly brought in $100 million each.
Pune-based marketplace, FirstCry is an Indian online store for baby product retailing launched in the year 2010. By 2020 the company had 380 stores across India out of which around 350 are franchise stores, making it Asia's largest online shopping store for kids & baby products.
The development comes when FirstCry’s early investors are looking to partially exit the company.
The company is also planning to expand its presence in the Middle East and looks to set up shops in markets such as Oman and Saudi Arabia. It is already the largest player in the segment in the UAE after setting up a business there in late 2019.
FirstCry, which entered the unicorn club last year, is planning to go public in three years. The company will look to target a public market listing in 18-24 months and the deal involves a $300 million secondary transaction. The transaction would double the company's valuation in less than 24 months.
“This round helps the company consolidate its investor base ahead of the IPO that it plans over the next 18-24 months,” says, Supam Maheshwari, CEO & Co-Founder, FirstCry,
The early investor, SoftBank Vision Fund had picked up a 40 percent stake in the company in 2019, valuing it at about $1.1 billion. Vertex Partners and MegaDelta Capital Advisors have sold their entire stakes as part of the latest transaction.
FirstCry received $400 million in fresh equity from the Masayoshi Son-led fund as part of a Series E funding round.
In the financial year 2020, the company’s revenue rose 68 percent to Rs 897 crore, helping it cut net losses by 83 percent to Rs 191 crore. Expenses dropped 26 percent to Rs 1,088 crore.
According to statistics, India's apparel market is expected to grow at 11 percent to $85 billion by 2021. The kidswear segment accounted for about 20 percent of that in 2018 and is predicted to reach nearly Rs 1.7 lakh crore by 2028.
Pune-based marketplace, FirstCry is an Indian online store for baby product retailing launched in the year 2010. By 2020 the company had 380 stores across India out of which around 350 are franchise stores, making it Asia's largest online shopping store for kids & baby products.
The development comes when FirstCry’s early investors are looking to partially exit the company.
The company is also planning to expand its presence in the Middle East and looks to set up shops in markets such as Oman and Saudi Arabia. It is already the largest player in the segment in the UAE after setting up a business there in late 2019.
FirstCry, which entered the unicorn club last year, is planning to go public in three years. The company will look to target a public market listing in 18-24 months and the deal involves a $300 million secondary transaction. The transaction would double the company's valuation in less than 24 months.
“This round helps the company consolidate its investor base ahead of the IPO that it plans over the next 18-24 months,” says, Supam Maheshwari, CEO & Co-Founder, FirstCry,
The early investor, SoftBank Vision Fund had picked up a 40 percent stake in the company in 2019, valuing it at about $1.1 billion. Vertex Partners and MegaDelta Capital Advisors have sold their entire stakes as part of the latest transaction.
FirstCry received $400 million in fresh equity from the Masayoshi Son-led fund as part of a Series E funding round.
In the financial year 2020, the company’s revenue rose 68 percent to Rs 897 crore, helping it cut net losses by 83 percent to Rs 191 crore. Expenses dropped 26 percent to Rs 1,088 crore.
According to statistics, India's apparel market is expected to grow at 11 percent to $85 billion by 2021. The kidswear segment accounted for about 20 percent of that in 2018 and is predicted to reach nearly Rs 1.7 lakh crore by 2028.
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