FirstCry to raise $1 billion via IPO; Kotak Mahindra Capital, Morgan Stanley on board

FirstCry IPO: Moneycontrol reported in February that Kotak Mahindra Capital and Morgan Stanley had come on board. [Representative image]

FirstCry, currently working on its mega initial public offering (IPO) plans, is all set to raise $1 billion via the listing, a person familiar with the development revealed to Moneycontrol. Multiple sources confirmed to Moneycontrol that preliminary discussions with investment banks over the IPO had already started.

Moneycontrol reported in February that Kotak Mahindra Capital and Morgan Stanley had come on board.

“Work has begun on the FirstCry IPO and as of now investment banks Kotak Mahindra Capital and Morgan Stanley are on board. More bankers are likely to be added later,” said one of the sources.

The same was confirmed by two other people.

Gini & Jony and Lilliput, two children's clothing manufacturers, sought domestic IPOs in the past but were unsuccessful.

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“The proposed IPO will be a combination of primary and secondary issue of shares and it may be the first pure play listing of its kind. It will provide a partial exit to the multiple investors ,” this person elaborated.

All the people mentioned above spoke to Moneycontrol on the condition of anonymity.

Supam Maheshwari and Amitava Saha, both from Pune, established FirstCry in 2010. It has 7.5 million registered customers, more than two lakh unique products (clothing, footwear, accessories, toys, toiletries, feeding supplies), 6,000 brands, and more than 400 storefronts across India, according to its website, with a presence in the UAE as well. In 2016, the company paid Rs 362 crores in cash and shares for the babycare company BabyOye, which was a subsidiary of Mahindra & Mahindra.

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FirstCry, which competes in the online publishing space alongside Hopscotch and Kids Stop Press, became a unicorn in 2020 after receiving $296 million from its major stakeholder, Softbank. FirstCry Parenting, India's largest parenting community, is also available through the portal.