Firstcry secures around $400 mn from Softbank as part of series-E funding

Baby and mother care products retailer Firstcry has secured around $400 million (Rs 2824.23 crore) from Softbank Vision Fund as part of its series-E funding. While the Japan-based PE fund has infused $296 million (Rs 2,120.5 crore) upfront, it has committed  another $100 million (Rs 703.71 crore) in the second tranche.

According to the financial data accessed by business intelligence platform Tofler, FirstCry’s holding entity BrainBees Solutions has allotted 73.1 million series E shares at a price of Rs 386 each to SVF Frog, a Cayman Islands-registered entity of Softbank as part of the deal.

Though, how much stake Softbank will hold after this round of funding has not been clarified by the company. Media reports had earlier suggested that the Softbank was looking at around 40 per cent holding in the company in lieu of $400-million investment.

Founded in 2010 by Supam Maheshwari and Amitava Saha, FirstCry has emerged as the leader in the sunrise baby and mother care sector segment, prompting rising interest of global investors.

Prior to this funding round, the start-up has raised about $125 million from clutch of investors such as IDG Ventures India, SAIF, Valiant Capital, Ratan Tata, Vertex Venture, and NEA.

The funds raised from Softbank are expected to be used by FirstCry to expand both its offline and online presence as well as to strengthen its technology platform. The company posted a revenue of Rs 535 crore in FY19, which it expects to grow to around Rs 2,000 crore in the current financial year. FirstCry had acquired BabyOye’s franchise business from Mahindra for $54 million in 2017.

As part of its diversification drive, the company acquired Oi Playschool in November last year. The company now eyes to expand its playschool portfolio to more than 1,000 centres across the country in the next five years.