FirstCry, an e-commerce platform specializing in products for mothers and children, has reported that its revenue from operations soared to Rs 5,632 crore, marking a 2.4-fold increase from the previous fiscal year’s revenue of Rs 2,401 crore.
However, this growth was accompanied by a staggering six-fold rise in net losses, reaching Rs 486 crore, up from Rs 79 crore in FY22.
Revenue breakdown and expenses
The majority of FirstCry’s revenue, accounting for 98%, came from product sales, totaling Rs 5,519 crore. The remaining revenue was generated from internet display charges and other sources.
The company’s expenses also saw a significant rise, with the cost of procurement of materials constituting 62% of the total cost, which increased 2.5 times to Rs 3,935 crore. Employee benefits and advertising expenses also grew substantially.
IPO launch
The development comes a week after several media reports claimed that FirstCry is preparing to file initial public offering (IPO) papers with SEBI by the end of this month.
The report added that the company looks to raise between $500 to $600 million with a target valuation of around $4 billion. In its last fundraising, FirstCry was valued at $3 billion.
SoftBank’s stake reduction
Earlier this week, Multiple media reports claimed that Former cricketer Sachin Tendulkar’s office and TVS Group, among others, have acquired shares in FirstCry.
SoftBank, a major investor in FirstCry, reportedly sold a significant portion of its shares in the company. This includes a recent sale of shares worth approximately $310 million (around Rs 630 crore). Following this, SoftBank’s ownership in FirstCry has reduced to less than 25%, down from about 30%.
The company offers a range of products, including apparel, toys, and accessories for babies, kids, and mothers, both online and through physical stores.
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