Pune-based omnichannel marketplace FirstCry’s parent entity BrainBees Solutions Private Limited has filed draft red herring prospectus (DRHP) with the market regulator SEBI. The Supam Maheshwari-led startup is looking to raise INR 1,816 Cr through fresh issues of shares.
The offer also includes an offer-for-sale (OFS) component comprising 5.4 Cr equity shares. Japan’s SoftBank which owns over 25% stake will sell the most with up to 2 Cr equity stakes, whereas Premji Invest 8.6 Mn shares during the OFS. Founder Supam Maheshwari will also sell his stake in the IPO.
The startup will utilise the net proceeds from the IPO for the following reasons:
1) Expenditure for setting up new modern stores, warehouses, as well as lease payments for our existing modern stores in India totalling INR 648 Cr.
2) Investment in the company’s subsidiary FirstCry Trading for overseas expansion via setting up new modern stores in Saudi Arabia totalling INR 155.6 Cr.
3) INR 170.5 Cr as investment in our subsidiary Globalbees Brands towards acquisition of additional stake in the company’s indirect subsidiaries.
4) Investment for sales and marketing initiatives to the tune of INR 100 Cr
5) Technology and data science cost of INR 57.6 Cr.
6) The rest would be going towards funding inorganic growth through acquisition and other strategic initiatives and general corporate purposes.
The company is also eyeing a pre-IPO private placement of equity shares to certain investors for an amount aggregating up to INR 363 Cr. The amount raised in the pre-IPO round will be reduced from the fresh issue.
For the three months ended June 30, 2023, the company incurred a loss of INR 110 Cr. The startup had 8.25 million annual unique transacting customers as of June 30, 2023.
In FY23, FirstCry’s net loss surged over 500% to INR 486 Cr in from INR 78.6 Cr in the previous fiscal year. It is pertinent to note that the startup had logged a net profit of INR 215.9 Cr in FY21.
FirstCry’s consolidated financials include the financial performance of its 38 subsidiaries, including Globalbees.
The startup clocked a sales of INR 5,632.5 Cr in FY23, a 135% from INR 2,401.2 Cr in FY22.
More details to follow
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