A Closer Look
FirstCry, the Pune-based parenting platform, has filed an updated draft red herring prospectus (DRHP) for its initial public offering (IPO). The IPO size remains at Rs 1,816 crore, with an offer for sale (OFS) of over 54 million equity shares from existing investors.
The company's key performance indicators (KPIs) include average order value, annual transacting customers, and number of orders. For the nine months ending December 2023, FirstCry recorded an operating revenue of Rs 4,814 crore with a net loss of Rs 278 crore.
FirstCry's biggest expense is its procurement cost, which stood at Rs 3,108 crore, accounting for around 60% of its total expenses in the first three quarters of FY24. The company plans to use the IPO proceeds to set up modern stores and a warehouse, make lease payments for existing stores, invest in subsidiaries, and pursue acquisitions and other strategic initiatives.
FirstCry was launched in India in 2010 as a one-stop destination for parenting needs. It offers products in categories such as apparel, footwear, baby gear, nursery, diapers, toys, and personal care. As of June 30, 2023, it offered over one million stock keeping units from over 6,800 brands.
The company has a network of 936 FirstCry and BabyHug modern stores in 465 cities across 27 states and four Union Territories. FirstCry's revenue from operations jumped to Rs 5,632 crore during FY23 as against Rs 2,401 crore in FY22. Income from sales of products accounted for 98% of the operating revenue, which surged 2.37 times to Rs 5,519 crore in FY23. However, the losses for the SoftBank-backed firm went up 6.15 times to Rs 486 crore in FY23 as compared to Rs 79 crore in FY22.