NewsBytes
    Hindi Tamil Telugu
    More
    In the news
    Narendra Modi
    Amit Shah
    Box Office Collection
    Bharatiya Janata Party (BJP)
    OTT releases
    Hindi Tamil Telugu
    NewsBytes
    User Placeholder

    Hi,

    Logout

    India
    Business
    World
    Politics
    Sports
    Technology
    Entertainment
    Auto
    Lifestyle
    Inspirational
    Career
    Bengaluru
    Delhi
    Mumbai

    Download Android App

    Follow us on
    • Facebook
    • Twitter
    • Linkedin
    Home / News / Business News / FirstCry's parent company Brainbees Solutions files for an IPO
    Next Article
    FirstCry's parent company Brainbees Solutions files for an IPO
    Share price details remain undisclosed as of now

    FirstCry's parent company Brainbees Solutions files for an IPO

    By Rishabh Raj
    Dec 28, 2023
    02:42 pm

    What's the story

    Brainbees Solutions, the parent company of online e-commerce unicorn FirstCry, has filed for an initial public offering (IPO) with the Securities and Exchange Board of India (SEBI).

    The Pune-based firm aims to raise Rs. 1,816 crore through fresh issue, as stated in the Draft Red Herring Prospectus (DRHP).

    Existing investors, such as Mahindra & Mahindra (M&M), SoftBank, TPG, and NewQuest Asia, plan to sell a combined 5.44 crore shares in Brainbees through an Offer for Sale (OFS).

    Details

    IPO details and valuation

    It was earlier reported that FirstCry is looking to raise a total of $500 million (nearly Rs. 4,200 crore) through its IPO.

    Around 60% of the amount will be the OFS component while the remaining will be fresh issue.

    Share price details remain undisclosed as of now. The selling price of the shares will be determined by Brainbees in consultation with the Book Running Lead Managers once the IPO's price band is decided.

    What Next?

    Use of funds and risks involved

    Proceeds from the IPO will be used to open new stores and warehouses, as well as expand internationally.

    The company mentioned in its DRHP, "We cannot assure you that we will continue to grow our customer base at this rate or at all in the future."

    "Further, if we fail to acquire new customers, or fail to do so in a cost-effective manner, we may not be able to maintain or increase our revenues or grow our operations."

    Insights

    FirstCry's financial performance

    FirstCry's consolidated net loss increased 515% from Rs. 79 crore in FY22 to Rs. 486 crore in FY23.

    However, its consolidated revenue grew by 135%, reaching Rs. 5,633 crore in FY23, up from Rs. 2,401 crore in FY22.

    FirstCry stands among the select e-commerce firms that surpassed the Rs. 5,000 crore revenue mark.

    Income from product sales accounted for 98% of the total operating revenue, while material procurement costs accounted for 62% of the overall expenses.

    Facts

    Stake sale by existing investors

    M&M will sell a 0.58% stake or 28 lakh shares in Brainbees Solutions, while SoftBank will offload 2.03 crore shares.

    Other selling shareholders include PI Opportunities Fund, TPG, NewQuest Asia, Apricot Investments, Valiant Mauritius Partners, TIMF Holdings, Think India Opportunities Master Fund, and Schroders Capital Private Equity Asia.

    SoftBank is FirstCry's largest shareholder with a 25.5% stake, followed by M&M's 10.98% stake.

    Facebook
    Whatsapp
    Twitter
    Linkedin
    Related News
    Latest
    Initial Public Offering (IPO)

    Latest

    Jackson Wang's India visit in doubt amid Indo-Pak tensions Diljit Dosanjh
    'Final Destination Bloodlines' advanced in India due to 'Mission Impossible' Tom Cruise
    Antony: Decoding the Manchester United winger's stats at Real Betis Manchester United
    Shahid Kapoor bags biggest paycheck of career for 'Farzi 2'  Kay Kay Menon

    Initial Public Offering (IPO)

    India sees record number of IPOs this year Business
    Mamaearth's IPO oversubscribed 7.6 times, receives bids worth Rs. 7,130cr Startups
    Cello World shares list at 28% premium to IPO price Stock Market
    Shein aims for $90 billion valuation in US IPO Fashion
    Indian Premier League (IPL) Celebrity Hollywood Bollywood UEFA Champions League Tennis Football Smartphones Cryptocurrency Upcoming Movies Premier League Cricket News Latest automobiles Latest Cars Upcoming Cars Latest Bikes Upcoming Tablets
    About Us Privacy Policy Terms & Conditions Contact Us Ethical Conduct Grievance Redressal News News Archive Topics Archive Download DevBytes Find Cricket Statistics
    Follow us on
    Facebook Twitter Linkedin
    All rights reserved © NewsBytes 2025