FirstCry sets wheels in motion for IPO, seeking to raise nearly $220Mn

Brainbees Solutions, parent behind Indian baby products unicorn FirstCry, has set the wheels in motion for the Initial Public Offering (IPO) of its widely recognized e-commerce platform, FirstCry. The IPO, which is substantially lower than the $700Mn it had earlier sought, has begun after the company submitted the official application to the Securities and Exchange Board of India (SEBI) on December 28.

The company aspires to raise $220Mn through a primary issue, as outlined in the Draft Red Herring Prospectus (DRHP), as per a report by Moneycontrol. In addition to the fresh equity shares, existing investors, including Mahindra & Mahindra (M&M), TPG, NewQuest Asia, and SoftBank, plan to collectively sell 5.44 crore shares in Brainbees through an Offer for Sale (OFS).

The share prices are yet to be disclosed, however, the firm’s expectations regarding the valuation falls between $3.5-3.75 billion. This marks a subtle increase from the valuation in its last fundraising round of $3 billion.

Proceeds from the IPO are earmarked for various strategic purposes. A substantial allocation of ₹648 crore is designated for the establishment of modern stores and the setup of warehouses, reflecting the company’s commitment to enhancing its physical infrastructure. Additionally, ₹155.6 crore is dedicated to fueling international expansion, emphasizing the company’s ambition to extend its footprint beyond domestic borders.

A strategic investment of ₹170.5 crore is planned for acquiring additional stakes in Globalbees’ indirect subsidiaries, aligning with the company’s pursuit of strategic partnerships. The allotment of ₹100 crore for sales and marketing initiatives underscores the emphasis on promoting brand visibility and customer outreach. Simultaneously, ₹57.6 crore is directed towards investments in technology and data science, showcasing the company’s dedication to technological advancements. The remaining funds are strategically reserved for inorganic growth initiatives and corporate purposes, reflecting a comprehensive approach to utilize the IPO proceeds effectively.


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