FirstCry, a kids-focused omnichannel retailer, recorded a consolidated net loss of INR 278.2 Cr for the nine months ending December 2023 in the financial year 2023-24 (FY24).
The Pune-headquartered startup reported a consolidated net loss of INR 486 Cr for the entire financial year 2022-23 (FY23), marking a 518% surge from INR 78.6 Cr in the preceding fiscal year.
According to the latest DRHP, FirstCry has recorded INR 4,814 Cr in revenue from operations for the initial nine months of FY24. The startup, preparing for an IPO, saw its operating revenue surge by 135%, reaching INR 5,632.5 Cr in FY23 compared to INR 2,401.2 Cr in the preceding fiscal year.
It’s worth noting that the omnichannel marketplace refiled its draft red herring prospectus (DRHP) on Tuesday (April 30) following a directive from the Securities and Exchange Board of India (SEBI). SEBI asserted that certain crucial indicators were omitted in the draft papers filed last December.
Continue Exploring: FirstCry refiles DRHP following SEBI review; IPO offer unchanged
Meanwhile, during the period under review, FirstCry disclosed a total expenditure of INR 5,159.8 Cr. This contrasts with the company’s total expenditure of INR 6,315.6 Cr in FY23.
“We may experience losses in the future. We have experienced losses for the nine months that ended on December 31, 2023, as well as for the fiscal years 2023 and 2022. “The company stated in its DRHP that it lost INR 278.2 Cr during the nine months that ended on December 31, 2023, as a result of its total expenses surpassing its total income.
In the period, the startup’s primary expenditure remains its procurement cost, amounting to INR 3,108.1 Cr. During FY23, the startup incurred a procurement cost of INR 3,935.3 Cr.
FirstCry allocated INR 370.4 Cr towards staff salaries, gratuity, PF, and other employee welfare benefits. In FY23, it disbursed INR 769.8 Cr for employee benefit expenses. Moreover, an employee share-based payment expense of INR 133.8 Cr was registered during the period.
Additionally, the startup allocated INR 365 Cr towards its advertising and sales promotion efforts. Throughout FY23, its advertising expenses totaled INR 416.4 Cr.
Established in 2010 by Supam Maheshwari and Amitava Saha, FirstCry operates as an omnichannel marketplace catering to baby and kids products. The startup transitioned into a public company last year, marking the initial phase of its journey towards listing on the stock exchanges.
Continue Exploring: FirstCry set to withdraw DRHP, to refile IPO papers with Q3 FY24 figures
To date, FirstCry has secured more than $700 Mn through various funding rounds, with notable backers including SoftBank, Chrys Capital, and Vertex Ventures.
In its IPO, the SoftBank-supported startup plans to raise INR 1,816 Cr through the issuance of fresh shares. Additionally, the offer-for-sale (OFS) segment involves shareholders selling 5.4 Cr equity shares.
Participating in the OFS are a number of shareholders, including SoftBank, Premji Invest, TPG Growth, and Mahindra.
