Entrepreneur Supam Maheshwari, recognized for establishing the online platform catering to newborns, parenting, and children’s products, FirstCry, has reportedly come under scrutiny for alleged tax evasion. Maheshwari is also the brains behind Globalbees Brands and Xpressbees, both of which have achieved unicorn status.
Notice Sent by Tax Department to FirstCry Founder
Reports indicate that the Indian tax department has initiated an investigation into potential tax evasion by Supam Maheshwari. Sources reveal that notices have been dispatched to Maheshwari, inquiring into the reasons behind his purported failure to pay over $50 million in taxes linked to equity transactions conducted through FirstCry.
Wider Implications: Investors Also Probed
The tax inquiry isn’t limited to Maheshwari alone. At least six investors affiliated with FirstCry, including ChrysCapital Management Co, a private equity firm, and the family office of Sunil Bharti Mittal, have reportedly been contacted by tax authorities for clarifications concerning this matter.
Efforts to Resolve the Matter
According to insiders familiar with the situation, Maheshwari is actively engaging with the tax department to reach a resolution regarding the ongoing investigation. However, he has yet to provide an official statement addressing the matter.
Business Evolution: From Losses to Profit in FristCry
After a period of operating at a loss, FirstCry marked a significant turning point. By achieving profitability in the fiscal year ending on March 31, 2021. The company reportedly aspires to enter the market with an initial public offering (IPO) after achieving operational profitability.
Scope and Presence
Based in Pune, FirstCry operates warehouses across India to fulfill orders. Its reach extends beyond India, encompassing a presence in the UAE as well. The company’s product range caters to babies and children, encompassing essentials such as diapers, baby food, infant accessories. As well as items like strollers, high chairs, nursery furniture, clothing, footwear, toys, and school-related products.
Conclusion
The allegations of tax irregularities against Supam Maheshwari, a prominent figure in the Indian entrepreneurial landscape. Highlights the importance of regulatory compliance and financial transparency in the business world. As investigations unfold, the outcome could potentially impact the trajectory of FirstCry and its associated ventures.
