SoftBank-backed omnichannel retail startup FirstCry has finally filed its draft red herring prospectus (DRHP) with the market regulator SEBI for raising INR 1,816 Cr through fresh issues of shares.
The IPO offer also comprises an offer-for-sale complement which will allow the startup’s investors to sell up to 5.4 Cr equity shares.
If we talk about the startup’s financials, in the first three months of the ongoing financial year i.e., FY24, Brainbees Solutions Limited has reported a sales of INR 1,406.9 Cr on a consolidated basis. The ecommerce unicorn primarily earns from selling babycare products on its platform. Including other income, FirstCry’s total income in Q1 of FY24 stood at INR 1,426.8 Cr.
The first three months’ sales is almost 25% of the startup’s entire FY23 sales. In FY23, FirstCry’s consolidated operating revenue stood at INR 56,32.5 Cr, a 135% increase from INR 2,401.2 Cr it had reported in the previous fiscal year.
Including other income, total income stood at INR 5,731.2 Cr in FY23, a jump of 127.7% from INR 2,516.9 Cr in FY22.
In the Q1 of FY24, FirstCry incurred a net loss of INR 110.4 Cr. FirstCry posted a consolidated net loss of INR 486 Cr in the financial year 2022-23 (FY23), a 518% increase from INR 78.6 Cr in the previous fiscal year.
Where Did FirstCry Spend?
The startup in Q1 of FY24 had reported a total expenses of INR 1,541.8 Cr. In the previous fiscal year, the startup’s total expenditure stood at INR 6,315.6 Cr, a 145% surge from INR 2,568 Cr in FY22.
Procurement Cost: Being a marketplace, FirstCry has spent INR 904.4 Cr for procuring products. This was almost 59% of the startup’s total expenditure in the first quarter. In FY23, the startup spent INR 3,953.3 Cr for procurement, a 150% increase from INR 1,572.1 Cr in FY22.
Employee Benefit Expenses: In the first quarter of FY24, the startup spent INR 159.2 Cr for employee benefit expenses. This also included INR 45.2 Cr worth of ESOP expenses. In FY23, FirstCry spent INR 769.8 Cr for employee benefit expense, a 127% increase from INR 338.8 Cr
Advertising Expenses: In Q1 FY24, FirstCry spent INR 164.5 Cr almost 10% of the startup’s revenue for the same period. In FY23, the startup spent INR 416.4 Cr, a 55% increase from INR 268.6 Cr in the previous fiscal year.
FirstCry’s IPO offer also includes an offer-for-sale element to it. The offer includes an OFS component comprising 5.4 Cr equity shares. Japan’s SoftBank, which owns over 25% stake, will sell the most with up to 2 Cr equity stakes, whereas Premji Invest will sell 8.6 Mn shares during the OFS. Besides, founder Supam Maheshwari will also sell his stake in the IPO. Interestingly, Maheshwari isn’t selling shares in the OFS.
The startup currently owns 321 modern stores and 615 franchise-owned stores across the country.
FirstCry has become the third Indian startup to have filed its draft papers in December this year. Earlier this month, coliving workspace Awfis filed DRHP to raise INR 160 Cr via fresh issues and Bhavish Aggarwal’s Ola Electric which is eyeing to raise INR 5,500 Cr via public markets.
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