India’s largest baby and mother care retailer, FirstCry is in early talks with Alibaba and Japanese conglomerate SoftBank to raise around US $ 200 million as it seeks to strengthen its market leadership in the segment. FirstCry hasn’t raised funding in the last two years.
If finalised, the investment is expected to value the retail chain at nearly US $ 800- US $ 900 million, a nearly two- fold increase from its current valuation of US $ 350 million. According to a source, investment bank Morgan Stanley is advising the eight- year-old company on the deal.
Buoyed by hefty returns on its investment in e-commerce giant Flipkart, SoftBank is scouting for fresh deals in India. Founded by Supam Maheshwari and Amitava Saha, FirstCry began its operations in 2010. So far, it has raised about US $ 125 million in funding from a slew of investors.
BrainBees Solutions, FirstCry’s parent company, managed to slash its loss by 86 per cent to bring it to nearly Rs. 54.55 crore in the current fiscal, according to the latest regulatory filings. The retail chain generates great revenue from its network of 300 stores; however, its online business remains bigger than the offline.