IPO-bound FirstCry's loss jumps 515% to Rs. 486cr in FY23
What's the story
FirstCry, a leading e-commerce platform for baby products, has seen a 135% increase in revenue from operations, reaching Rs. 5,633 crore in FY23, up from Rs. 2,401 crore in FY22.
However, the company's net loss also expanded by 515%, from Rs. 79 crore in FY22 to Rs. 486 crore in FY23.
The SoftBank-supported start-up is gearing up for a public market debut next year and is anticipated to submit its draft IPO papers this week.
Details
Expenses mount, impacting bottom line
The growing losses for FirstCry can be traced back to a substantial rise in expenses during FY23.
The company's total expenses surged 146% YoY, from Rs. 2,568 crore in FY22 to Rs. 6,316 crore in FY23.
This increase in expenses was mainly due to higher employee-related costs, finance costs, and other expenses such as procurement costs.
FirstCry's financial performance comes just days before it files its draft IPO papers with the Securities and Exchange Board of India (SEBI).
What Next?
IPO plans and stake dilution
FirstCry aims to raise $500 million through its IPO.
Of this, 60% will be the offer for sale (OFS) component, while the remaining will be the primary part.
In anticipation of the planned listing, early investors have been reducing their stakes in FirstCry and making room for new investors.
SoftBank recently sold shares worth Rs. 630 crore in FirstCry to family offices of cricketer Sachin Tendulkar, Infosys co-founder Kris Gopalakrishnan, Ravi Modi of Manyavar, and others in a secondary transaction.