SoftBank Vision Fund, the primary stakeholder in FirstCry, has undertaken additional share sales, paving the way for a diverse group of high-profile investors to join the fray. Notable names in this latest development include the family offices of cricket legend Sachin Tendulkar, ethnic wear brand Manyavar’s Ravi Modi, and Infosys co-founder Kris Gopalakrishnan. The move comes as FirstCry gears up for what could be one of the most substantial IPOs in the Indian retail sector.
Sources familiar with the matter reveal that the total secondary share sale leading up to next year’s planned public listing has now exceeded Rs 1,000 crore in the case of FirstCry. SoftBank’s involvement has been prominent, with the technology investor reportedly selling shares worth approximately Rs 600 crore. This has resulted in SoftBank’s holding in FirstCry dropping below the 25% mark, marking a deliberate reduction from the 29-30% stake held just a couple of years ago.
The ongoing divestment by SoftBank follows reports from December 19, when it was first suggested that FirstCry was poised to submit its draft IPO papers. The company is ambitiously eyeing a substantial fundraising goal of $500-600 million through its impending public offering, adding significant momentum to the burgeoning Indian ecommerce landscape.
While Sachin Tendulkar, Ravi Modi, and Kris Gopalakrishnan’s family offices have seized the opportunity to invest in FirstCry, other key players in the secondary share sale include the family offices of Ranjan Pai (Manipal Group), Harsh Mariwala’s (Marico) investment office Sharrp Ventures, and Hemendra Kothari’s DSP family office.
SoftBank’s journey with FirstCry began in 2020, with an initial investment of around $400 million. As of now, sources indicate that SoftBank has already realized close to $300 million in returns from its investment in the omnichannel retailer. Although SoftBank’s current holding has been significantly diluted, estimates suggest that the remaining stake could still command a valuation of $1 billion if FirstCry achieves a listing valuation of $4 billion or more.
While FirstCry has remained tight-lipped about its IPO valuation, industry insiders suggest that it could potentially reach the $4 billion mark. This would signify a notable increase from its last valuation of just under $3 billion.
Both FirstCry and SoftBank declined to comment on the recent developments surrounding the share sale.
In the realm of IPO dynamics, a secondary share sale involves existing investors selling their stakes, either partially or in full, to new investors. The capital generated from this transaction does not contribute to the company’s coffers. In contrast, a primary share sale involves the issuance of new shares, enabling the company to raise fresh capital. FirstCry’s forthcoming IPO is expected to adopt a mixed approach, with 35-37% of the offering allocated to a primary share sale and the remainder constituting a secondary sale, often referred to as an offer for sale (OFS).
As SoftBank reduces its stake, a new wave of investors, including Premji Invest—the family office of Wipro founder Azim Premji—and the Mahindra group, will be joining FirstCry’s cap table. The company, headquartered in Pune, is on track to become the second Indian vertical ecommerce platform to go public, following in the footsteps of Nykaa’s successful IPO in 2021.
FirstCry, founded in 2010 by Supam Maheshwari, Sanket Hattimattur, Amitava Saha, and Prashant Jadhav, specializes in offering a comprehensive range of products for children and mothers through both online and offline channels. With nearly 1,000 retail stores across India, the company is approaching a significant milestone in its expansion. Additionally, FirstCry operates a strategic ecommerce roll-up subsidiary known as Globalbees, further diversifying its market presence.
As the IPO journey unfolds, the entry of influential investors and high-profile family offices into FirstCry’s ecosystem underscores the market’s confidence in the company’s growth trajectory and its standing within the fiercely competitive ecommerce landscape.
