A FirstCry store in India / Photo credit: FirstCry
India-based FirstCry, a baby care ecommerce firm, is looking to retract its IPO application following queries from the Securities and Exchange Board of India (SEBI) on the company’s key metrics, Reuters reported.
FirstCry aimed to raise around US$500 million, which consists of US$215 million from new shares and an extra US$300 million through the sale of existing ones.
SEBI said that FirstCry hasn’t abided by one of its listing rules. It states that a company going public has to disclose all crucial business metrics that could influence potential investors.
To list, FirstCry must disclose numbers such as average order value, yearly transacting customers, and total orders. Because of this, FirstCry is set to withdraw its application, make the necessary changes, and then resubmit the IPO papers.
For the fiscal year ended March 31, 2023, FirstCry reported a surge in losses to about US$59 million. However, its total revenue more than doubled to US$691 million.
A key driver for the company’s losses in FYE 2023 was its increased spending on advertising and sales promotions, which ballooned more than twofold compared to FYE 2021.
See also: FirstCry tops in India baby ecommerce, but SEA players face a fragmented region
Editing by Putra Muskita and Dhania Putri Sarahtika
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