IPO-bound FirstCry’s revenue jumps 135% to Rs 5,633 crore in FY23, losses spike 6X

File photo

FirstCry, the e-commerce unicorn which is aiming for a public market debut next year, saw its revenue from operations jump 135 percent from Rs 2,401 crore in FY22 to Rs 5,633 crore in FY23 as demand for its products soared.

For the Pune-based startup, the increased demand was, however, coupled with a widening bottom line. FirstCry, which sells baby clothes, diapers, cycles, toys and the like, saw its net loss widen 515 percent from Rs 79 crore in FY22 to Rs 486 crore in FY23, filings sourced via Tofler showed.

Moneycontrol had earlier reported that the SoftBank-backed startup was preparing for a public market debut and that it is expected to file its draft IPO papers this week. The company is eyeing a valuation of about $3.5-3.75 billion, a tad higher than $3 billion that it commanded during its last fundraise.

The widening losses were largely because FirstCry saw its expenses mount in FY23. The company’s total expenses climbed from Rs 2,568 crore in FY22 to Rs 6,316 crore in FY23, or a 146 percent change year-on-year (YoY), largely on the back of higher employee-related expenses, finance costs and other expenses, including procurement costs.

"The core business remains to grow strongly with positive bottom line and profitability and the overall business growth is at 135 percent," the company said in a statement.

FirstCry's financial report card comes just days before it files its draft IPO papers with the Securities and Exchange Board of India (SEBI). Through its IPO, which will likely go live in 2024, FirsCry is looking to raise $500 million. Of that, 60 percent will be the offer for sale (OFS) component while the remaining will be the primary part, sources had told Moneycontrol earlier.

Ahead of its planned listing, early investors have been diluting their stakes in FirstCry and are making way for new investors. SoftBank, an early backer of the e-commerce player, recently sold shares worth Rs 630 crore in FirstCry. 

The shares were reportedly bought by family offices of cricketer Sachin Tendulkar, Infosys co-founder Kris Gopalakrishnan, Ravi Modi of Manyavar, the ehnic clothing brand, among several others, in a secondary transaction.