FirstCry refiles draft IPO papers; company says its generated Rs 4,814-crore revenue until December

Supam Maheshwari, Firstcry MD and CEO

FirstCry has refiled its draft IPO papers with the Securities and Exchange Board of India (SEBI) with updated financial metrics. The company had first filed its draft red herring prospectus (DRHP) in December 2023 but the market regulator sought additional details and asked the startup to provide more clarity.

Moneycontrol had reported on April 29 that FirstCry was set to refile its IPO papers by midnight.

While the IPO size remains the same at $500 million, the company added that it generated a revenue of Rs 4,814 crore in the nine months leading up to December 31, 2023. During the same period, it incurred a loss of Rs 278 crore, the updated DRHP showed.

SEBI and FirstCry were engaging for over a month before the regulator finally sent back the company's filings and sought more clarity last week.

SEBI had initially sought 25 KPIs of which FirstCry provided only 5-6 in its first set of filings, sources told Moneycontrol earlier. FirstCry's KPIs include its average order value, annual transacting customers, and number of orders. Along with a more elaborate set of KPIs, SEBI also asked for an updated set of financials.

While the same period for a year-on-year (YoY) comparison is not available, the Pune-based company had generated an operating revenue of Rs 5,633 crore in FY23 and incurred a loss of Rs 486 crore in the year.

Similarly, in FY22, FirstCry had reported an operating revenue of Rs 2,401 crore and a loss of Rs 79 crore in the year.  A bulk of the company's sales, more than 75 percent, came from online channels, the DRHP showed.

In the most recent round, wherein secondary transactions took place, FirstCry commanded a valuation of Rs 23,000 crore (around $2.8 billion). The company is however expected to price its IPO at a valuation of $3.5-3.75 billion.