Indian baby care startup FirstCry valued at nearly USD 2 billion
SoftBank-backed Indian baby care products omnichannel retailer FirstCry, which reportedly looks to get listed in the next 18-24 months, has just raised USD 315 million from private equity investors including TPG Capital, ChrysCapital, and Premji Invest.
The new funding round valued the decade-old company at somewhere between USD 1.9 and 2.1 billion, per local media Economic Times (ET).
According to the report, this round of investment gave FirstCry’s early investors Elevation Capital (formerly SAIF Partners), Vertex Partners, and MegaDelta Capital Advisors a complete exit, as they sold their shares collectively for USD 300 million. While all three investors pumped in USD 100 million each in the secondary share deal, Premji Invest put in USD 13 million as primary capital.
“This round helps the company consolidate its investor base ahead of the IPO that it plans over the next 18-24 months,” a person with direct knowledge of the matter told ET.
Founded in 2010, FirstCry sells baby products such as clothes, toys, footwear, car seats for babies, among others. In the last 10 years, it has emerged as one of the biggest players in the baby and mother care segment and operates an online marketplace as well as over 300 physical retail stores spanning across 125 cities. It claims to have a user base of more than four million who have the option to buy products of 2,000 brands.
In 2015, the baby care unicorn company acquired its competitor BabyOye from Mahindra Retail in an all-stock deal worth USD 50 million. Two years ago, it raised USD 400 million from SoftBank Vision Fund in Series E round that gave the latter a 40% stake in the company.
The online platform of FirstCry competes with Hopscotch, Kids Stop Press, as well as Ajio.com and Myntra that are traditionally into adult wear category. Last year, Walmart-owned fashion e-tailer Myntra launched toy segment on its platform after seeing a staggering growth of 90% in kids wear segment.
The company is currently looking to expand into the Middle East market with a plan to set up shop in Oman and Saudi Arabia, the ET report said.
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