FirstCry, the IPO-bound e-commerce unicorn, reported a six-fold jump or 515% increase in its net loss for FY23 at ₹486 crore from ₹79 crore in FY22, reports said.
The company’s revenue from operations during the financial year 2022-2023 increased 135% to ₹5,633 crore from ₹2,401 crore in FY22 led by strong demand. Its ROCE stood at -7%, while EBITDA margin was at -2%.
The SoftBank-backed FirstCry offers toys, apparel and accessories for babies, kids and mothers through online and physical stores.
The company’s income from the sale of products surged 2.37 times to ₹5,519 crore in FY23. This income accounted for 98% of the total operating revenue. Internet display charges (advertising) and other operating sources accounted for the rest, a report said.
A sharp increase in expenses led to the widening of losses for the Pune-based startup in FY23. Its total expenses jumped 146% to ₹6,316 crore during the reported year from ₹2,568 crore, YoY, reported entrackr.
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The cost of procurement of materials, which accounted for 62% of the overall cost, rose 2.5 times to ₹3,935 crore from ₹1,572 crore, YoY.
Earlier it was reported that the omnichannel retailer was set to file its draft IPO papers in the coming days after having postponed its public listing in the previous year due to volatile market conditions.
FirstCry plans to raise $500-600 million from the initial public offering (IPO), seeking a valuation of about $3.5-3.75 billion, according to multiple reports.
Ahead of the IPO, its primary stakeholder SoftBank has strategically offloaded additional shares, creating an opportunity for family offices and prominent investment firms to secure their positions in the company prior to its IPO.
Through this transaction, SoftBank cut its ownership in FirstCry to less than 25% by divesting shares valued at ₹600 crore, Economic Times had reported. A few years ago, the investment firm held approximately 30% of the company.
According to a report, family offices of Indian cricketer Sachin Tendulkar, Ravi Modi of ethnic wear brand Manyavar, Infosys co-founder Kris Gopalakrishnan, and TVS group family were among the buyers who purchased equity shares of the company.
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Published: 27 Dec 2023, 02:01 PM IST