Rakuten on August 3
FirstCry, an India mother and baby start-up, has also submitted a prospectus for a local listing on August 13, 2024.
FirstCry's offering ranges from Rs 440 to Rs 465 per share, with plans to raise about $500 million at a valuation of $2.7 billion.
While this is in line with FirstCry's late 2023 private placement valuation, it is well below the $4 billion valuation sought in 2023 and the $6 billion price target in 2022.
The annual loss was $38.37 million
Founded in 2010, FirstCry is one of the most important vertical e-commerce companies in India, providing various categories of maternal and child products from children's clothing to school supplies, with cooperative brands including Funskool, Hotwheels, Pampers, Disney and other 250+ global brands.
FirstCry has 1,063 FirstCry and BabyHug stores in 533 cities, totaling 2.12 million square feet of retail space.
For the fiscal year ended March 31, 2024, FirstCry's revenue was Rs 6,480.86 crore (about $773 million), up 15% from Rs 5,632.54 crore (about $672 million) in the same period last year;
For the fiscal year ended March 31, 2024, FirstCry lost Rs 3,215,100 crore (about $38.37 million), compared to a loss of Rs 4,860,100 crore (about $58 million) in the previous year.
SoftBank is the largest shareholder
In 2019, SoftBank acquired a 40% stake in FirstCry for $400 million. In early 2020, FirstCry closed a $150 million Series E funding round with investment from SoftBank.
IPO前，软银旗下SVF Frog (Cayman) Ltd持股为25.53%，M&M持股为10.97%，Brainbees ESOP Trust持股为8.4%，Supam Maheshwari持股为5.94%，PI Opportunities II持股为5.44%；
TPG持股为4.94%，PI Opportunities I持股为4.9%，NextGen持股为4.63%，NewQuest持股为3.82%，Apricot持股为3.46%，Valiant持股为3.05%，BEWT持股为2.7%；
Amitav Saha持股为1.99%, Prashant Jadhav持股为1.44%, Timf、Think India、Memg分别持股为1.06%,
India companies are facing overvaluations
India's largest electric two-wheeler maker Ola Electric is also preparing to go public, with a loss of $189.2 million on revenue of $626.3 million for the fiscal year ended March 31, 2024.
According to its term sheet, Ola Electric plans to raise more than $730 million by selling its shares at 72 to 76 rupees (86 to 91 cents) per share.
The pricing values the company at about $4 billion, 26% below the $5.4 billion it received in a funding round in October 2023 and well below the valuation range of $6.5 billion to $8 billion it initially set for an IPO.
In fact, Ola Electric was valued at $5 billion in a funding round in January 2022.
Ola Electric said it has raised US$319.5 million, or about 45% of its IPO offering, from cornerstone investors, including HDFC and SBI as well as mutual funds from Norges and Nomura.
Ola Electric's model is a bit similar to China's two-wheeled electric vehicle company Maverick Electric, and FirstCry is similar to China's baby tree, whether it is Ola Electric or FirstCry, if compared with Chinese counterparts, it is actually much overestimated.
As a result, to adapt to the new market realities, both Ola Electric and FirstCry had to set their share prices at a lower level than previously required valuations.
Analysts note that the right pricing "can help attract cornerstone investors and long-term public market investors, as well as retail investors to subscribe to IPOs." Attracting such investors also increases the company's chances of increasing earnings from the IPO while enhancing the performance of the stock after listing.
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Lei Di was founded by Lei Jianping, a media person, if it is reprinted, please indicate the source.