IPO-bound Indian unicorn FirstCry targets $218m raise

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Brainbees Solutions, the parent firm of Indian babycare retailer Firstcry, is looking to raise US$218 million via an IPO. The company is reportedly aiming for a nearly US$4 billion valuation – higher than its latest private market valuation but lower than its initial US$6 billion target.

In a preliminary prospectus, Brainbees disclosed that certain investors – including SoftBank, NewQuest, and TPG – are poised to divest up to 54.4 million shares. The company said it will deploy the IPO funds to build more stores in India and Saudi Arabia as well as to clear leases for its existing Indian stores.

Founded in 2010, FirstCry sells apparel, toys and accessories for babies, kids, and mothers through its online and physical stores. It offers over 1 million stock-keeping units from more than 6,800 brands from India and overrseas as well as its own labels like BabyHug and Babyoye.

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The online retailer, which saw a 2.4x surge in revenue in fiscal year 2023, initially planned to go public last year, but unfavorable market conditions delayed the listing.

FirstCry’s IPO comes after Indian beauty and skincare brand Mamaearth, whose parent company Honasa quietly debuted on the National Stock Exchange of India in November.

2023 has been a record-breaking year for India’s IPO market, with over 180 companies going public. However, total proceeds are still down compared to 2022.