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Private equity firms invest $315 million into Firstcry: Report

Firstcry, which is backed by SoftBank, will reportedly aim to make a stock market debut in 18-24 months

March 30, 2021 / 09:16 AM IST
Representative image

Representative image

Three private equity (PE) investors have pumped in around $315 million into children's retailer Firstcry, in a deal that values the company at around $1.9-$2.1 billion.

The PE firms - TPG, ChrysCapital and Premji Invest - invested around $100 million each into Firstcry, according to a report by The Economic Times.

The deal comprises a $300 million secondary transaction and a primary component of around $13 million from Premji Invest, the report added, citing a regulatory filing.

SoftBank-backed Firstcry will aim to make a stock market debut in 18-24 months, a person aware of the development told the publication.

Moneycontrol could not independently verify the news report.

Supam Maheshwari, Chief Executive Officer (CEO) and co-founder of Firstcry, declined to comment when contacted by the newspaper.

According to the report, Firstcry's early investors such as Elevation Capital (formerly SAIF Partners), Vertex Partners and MegaDelta Capital Advisors sold their entire holdings.

Spokespersons for ChrysCapital, Premji Invest, TPG, Elevation Capital, MegaDelta and Vertex had not responded when contacted by the publication.

The company's list of investors includes Mahindra Group, Valiant Capital, former Tata Sons chairman Ratan Tata and Kris Gopalakrishnan, the chairman of Axilor Ventures.

"This round helps the company consolidate its investor base ahead of the IPO that it plans over the next 18-24 months," a source told the publication.

In January 2019, SoftBank Vision Fund had invested $400 million in Firstcry for a 40 percent stake, valuing the company at $1.1 billion.

Moneycontrol News
first published: Mar 30, 2021 09:16 am