FirstCry, the renowned e-commerce platform specializing in products for mothers and babies, recently revealed a surprise growth in its revenue, which increased to Rs 5,632 crore from Rs 2,401 crore in the previous financial year. It is up to 2.4 times more than the initial stage.
Despite the remarkable increase in revenue, there was a considerable six-fold surge in net losses, soaring to Rs 486 crore from Rs 79 crore in the previous fiscal year (FY22).
Most of FirstCry’s revenue, accounting for 98%, stemmed from product sales, amounting to Rs 5,519 crore. Meanwhile, the remaining payment was derived from internet display charges and other sources. Simultaneously with the rise in revenue, the company experienced a significant increase in its expenditures.
The cost of procuring materials, making up 62% of the total expenses, surged by 2.5 times, reaching Rs 3,935 crore. Alongside this surge, there were substantial spikes in both employee benefits and advertising expenses.
During these financial disclosures, reports emerged indicating FirstCry’s plans to submit Initial Public Offering (IPO) documents to SEBI by the end of the month. The expected IPO aims to generate approximately $500 to $600 million, with a nearly $4 billion valuation goal. It comes after the company achieved a valuation of $3 billion in its previous fundraising round.
SoftBank, a key investor in FirstCry, recently sold a considerable portion of its shares, leading to a reduced stake in the company. This divestment caused SoftBank’s ownership in FirstCry to drop below 25% from its previous holding of around 30%.
FirstCry’s offerings span a diverse spectrum, encompassing apparel, toys, and accessories for babies, kids, and mothers. These products are available both online and through the brand’s physical stores, consistently catering to the needs of its consumer base.
The contrasting picture of surging revenue figures, escalating losses, the forthcoming IPO, and pivotal changes in stake ownership portrays a dynamic scenario for FirstCry. This dynamic represents opportunities and hurdles as the company charts its course toward enhanced growth and broader market reach.
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