SoftBank-Backed FirstCry To File IPO Papers By December-End

Amid the ongoing boom in the IPO market, SoftBank-backed ecommerce unicorn FirstCry is reportedly looking to file its draft red herring prospectus (DRHP) in a few days. It is aiming to raise $500 Mn-$600 Mn from the IPO.

People in the know of the matter told the Economic Times that while the valuation has not yet been finalised, the startup could be pegged at around $4 Bn during the IPO.

“The draft red herring prospectus is likely to be filed with the markets regulator SEBI before December 29. The listing is expected to be post the general elections,” a source was quoted as saying.

Founded in 2010 by Supam Maheshwari and Amitava Saha, FirstCry is an omnichannel baby and kids marketplace. It converted into a public company last year. 

A report around April last year said that the startup was planning to file its IPO papers within a month to raise $700 Mn, seeking a valuation of at least $6 Bn. However, the startup most likely deferred its IPO plans amid uncertain market conditions and a slump in the share prices of listed new-age tech companies.

If the IPO takes place, FirstCry would become the second new-age vertical ecommerce major to go public after Nykaa.

A few months back, three family investment offices – Manipal Group’s Ranjan Pai’s MEMG Family Office, Marico’s Harsh Mariwala’s investment office Sharrp Ventures, and the DSP family office of Hemendra Kothari – picked up stakes in the startup for about INR 435 Cr from SoftBank.

SoftBank has been looking to dilute its stake further to bring it under 26% so that it does not get classified as a promoter of FirstCry.

At least 10 startups are expected to go for an IPO in 2024, which also includes SoftBank-backed Ola Electric and Swiggy.

Meanwhile, after reporting a profit in FY21, FirstCry slipped into the red with a net loss of INR 78.7 Cr in FY22.