FirstCry In talks To Raise Equity Financing

Online baby products retailer FirstCry is in talks with multiple investors including Temasek Holdings to raise equity financing of about $100 million (Rs665.27 crore).

FirstCry owner Brainbees Solutionsis seeking to be valued at $400-500 million for this fundraises, they said. The Pune-based company was estimated to be worth $300-350 million when it last raised capital in October.

FirstCry is the recognised market leader in the online baby products retail segment, particularly after it acquired Mahindra Retail a year ago for about RS 362 crore in a deal considered a landmark in Indian retail.

According to a Euromonitor report published in May “FirstCry also competes with online retail giants Flipkart and Amazon India but nevertheless has been an investor favourite given its verticalised product focus in a fast-growing segment. India's baby and child-specific product market is expected to grow at a CAGR of 8%, reaching Rs 2,940 crore by 2021.”

As part of its acquisition of Mahindra Retail, FirstCry raised Rs 226 crore in fresh funding from Mahindra Group and Switzerland's Adveq, besides existing investors including IDG Ventures India, SAIF Partners, New Enterprise Associates and Vertex Ventures, the venture capital arm of Temasek. Overall, FirstCry has raised about $125 million (about Rs 820 crore) in funding so far.