FirstCry FY24: Loss Narrows 34%, Revenue Crosses INR 6K Cr Mark Ahead Of IPO

SUMMARY

The IPO-bound startup’s consolidated net loss declined almost 34% to INR 321.5 Cr in FY24 from INR 486 Cr in the previous fiscal year

Operating revenue increased 15% to INR 6,480.8 Cr during the year under review from INR 5,632.5 Cr in FY23

FirstCry’s IPO will comprise a fresh issue of shares worth INR 1,816 Cr and an OFS component of 5.4 Cr shares. It is expected to file its RHP this week

IPO-bound omnichannel marketplace FirstCry reported an almost 34% decline in consolidated net loss of INR 321.5 Cr in the financial year 2023-24 (FY24) from INR 486 Cr in the previous fiscal.

The startup’s operating revenue increased 15% to INR 6,480.8 Cr during the year under review from INR 5,632.5 Cr in FY23.

The metrics are in sharp contrast to the company’s 500% year-on-year (YoY) increase in net loss and 135% YoY rise in the top line in FY23.

Founded in 2010 by Supam Maheshwari and Amitava Saha, FirstCry is an omnichannel baby and kids marketplace. It earns revenue from sale of traded goods, loyalty points programmes, internet display charges, royalty and sales of student kits to franchisee schools, among others.

FirstCry filed its draft red herring prospectus (DRHP) with SEBI in December last year. However, it withdrew the draft paper earlier this year and refiled it in April. As per its DRHP, in the first nine months of FY24, it clocked sales of INR 4,814 Cr and incurred a loss of INR 278.2 Cr.

FirstCry is aiming to raise INR 1,816 Cr through a fresh issue of shares in its public offering. Its IPO will also comprise an offer-for-sale (OFS) component of 5.4 Cr equity shares.

The startup is set to go public as a loss-making entity despite the public markets looking at profitability as one of the key factors for subscribing to new IPOs.

As per a report, FirstCry is likely to file its red herring prospectus (RHP) this week.

Where Did FirstCry Spend In FY24?

FirstCry’s total expenses rose over 9% to INR 6,896.6 Cr during the year under review from INR 6,315.7 Cr in FY23.

Purchases Of Stock-In-Trade: This bucket accounted for a significant 56.4% of the startup’s total spending during the year. FirstCry’s spending here jumped almost 25% YoY to INR 3,889.9 Cr in FY24.

Cost Of Materials Consumed: It spent INR 557.5 Cr towards cost of materials in FY24 as against INR 479.5 Cr in the previous fiscal year.

Employee Cost: The startup managed to control its spending towards employee benefit expenses during the year. It spent INR 686.5 Cr under the head in FY24 as against INR 769.8 Cr in FY23 due to a decline in ESOP expenses.

Its employee share-based payment – equity settled more than halved YoY to INR 178 Cr in FY24.

Ad Expense: FirstCry spent INR 482.2 Cr towards advertising and promotional expenses in FY24, which increased about 16% YoY.

Cost Transportation: The startup’s spending in this bucket increased over 27% YoY to INR 545.7 Cr.