FirstCry IPO: SoftBank To Offload Over 2 Cr Shares

SoftBank will offload the highest number of shares in Pune-based omnichannel marketplace FirstCry’s initial public offering (IPO). As per the draft red herring prospectus (DRHP), the Japanese investor behemoth will be selling up to 2 Cr shares as part of the offer for sales (OFS) component of the public issue. 

SoftBank’s SVF Frog (Cayman) Ltd holds over 12.4 Cr shares or a 25% stake in the company.

The unicorn’s IPO comprises fresh issues of shares aggregating up to INR 1,816 Cr and an OFS component of up to 5.4 Cr equity shares. 

Besides SoftBank, several others including Mahindra & Mahindra, Premji Invest, private equity investor TPG, Apricot Investments and NewQuest are also offloading their stakes in the IPO.

Mahindra & Mahindra, which holds over 4 Cr shares in FirstCry or almost an 11% stake, will offload over 28 Lakh shares in the OFS. On the other hand, Premji Invest, holding over 2 Cr shares in the startup, will offload 86 Lakh shares.

TPG Growth also holds almost 2 Cr shares in FirstCry and is looking to offload around 39 Lakh of them in the IPO. Meanwhile, TPG’s NewQuest Asia Investments III Limited will offload over 30 Lakh shares in FirstCry IPO.

As an individual shareholder in the startup, Ratan Tata is selling 77,900 shares as part of the IPO.

FirstCry cofounder and CEO Supam Maheshwari, who holds over 2.8 Cr shares in the company, will also sell 18.2 Lakh shares in the IPO. The other cofounder Amitava Saha is selling over 13 Lakh shares.

Founded in 2010 by Maheshwari and Saha, FirstCry is an omnichannel baby and kids marketplace. The unicorn is looking to use the funds raised from the IPO to set up new modern stores and warehouses, invest in its subsidiary Globalbees Brands, and other expenses for growth such as acquisition and more.

In FY23, FirstCry’s net loss surged over 500% to INR 486 Cr from INR 78.6 Cr in the previous fiscal year. Notably, the startup had logged a net profit of INR 215.9 Cr and sales revenue of INR 1,602.8 Cr in FY21. In FY23, the startup clocked a sales of INR 5,632.5 Cr, registering a 135% jump from INR 2,401.2 Cr in FY22.

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.