FirstCry receives $315 million investment from private equity investors

FirstCry has received $315 million investment from a consortium of private equity investors - TPG, ChrysCapital and Premji Invest - valuing the omnichannel children’s retailer at around $1.9-$2.1 billion.

As per Economic Times, the company will target a public market listing in 18-24 months. The deal involves a $300 million secondary transaction.

There is also a small primary component of about $13 million from Premji Invest, regulatory filings showed. The early investors in the SoftBank-backed company, such as Elevation Capital (formerly SAIF Partners), Vertex Partners and MegaDelta Capital Advisors have sold their entire stakes as part of the latest transaction.

The current transaction has doubled the company’s valuation in less than 24 months — SoftBank Vision Fund had picked up 40 per cent in FirstCry in 2019, valuing it at about $1.1 billion. The omnichannel retailer dedicated to baby and mother care products received $400 million in fresh equity from the Masayoshi Son-led fund as part of its Series E round.

This round helps the company consolidate its investor base ahead of the IPO that it plans over the next 18-24 months.

Founded in September 2010, FirstCry acquired BabyOye from Mahindra Retail in an all-stock deal worth Rs 362 crore ($50 million) in 2015. Its other investors include Mahindra Group, Valiant Capital, Ratan Tata and Kris Gopalakrishnan.

In the financial year 2020, the Pune-based company’s revenue rose 68 per cent to Rs 897 crore, helping it cut net losses by 83 per cent to Rs 191 crore.