Brainbees Solutions Ltd. plans to open 350 new FirstCry stores in the next three years by using the proceeds from the upcoming initial public offering, Chief Executive Officer Supam Maheshwari said on Thursday.
The FirstCry parent firm is aiming to raise up to Rs 4,193.7 crore, including a fresh issue of Rs 1,666 crore and an offer-for-sale component consisting of 5.43 crore shares. The three-day public issue will open on Aug. 6, and the company will raise funds from its anchor investors on Aug. 5.
The funds raised from the IPO will be used to fuel the company's expansion plans, enhance its online and offline presence, and drive profitability in the coming years.
"Currently, 68% of our total 1,050 stores are franchise-operated, while the new stores will be company-owned," Maheshwari told NDTV Profit. "But we plan to expand in both segments."
The company, with 1.65 million stockkeeping units across 7,500 brands, is the largest multi-category mother, baby, and kids' product brand in India and Asia-Pacific, excluding China, the managing director said.
"We operate in all the demand pockets that a new mother could buy from. Our online store contributes to 75% of the GMV (gross merchandise value), and our 1,000+ stores give us close to 25–26% of the GMV. We recently forayed into supplying our home brands to pharmacies and supermarkets as well," he said.
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FirstCry showed consistent improvement in its financial performance. The company turned Ebitda-positive with Rs 70 crore in the last fiscal, reporting revenue of Rs 6,480 crore. The company's international business and GlobalBees shopping channels also demonstrated strong growth of 55% and 35%, respectively, according to the CEO.
He said the price-discovery process involved extensive feedback from management teams, domestic and international institutional investors, and recommendations from book-running lead managers.
The valuation at the upper end of the price band stands at about Rs 24,300 crore or $2.9 billion. That is roughly a 10% discount to its last private funding round of about $3.3 billion.
With a growing base of millennial mothers who are increasingly online-savvy, FirstCry is well-positioned to continue its growth trajectory, it said.
The online and offline retailer for baby and kids' products in India was founded in 2010. It is a shopping destination for mothers, babies, and kids. The platform offers an extensive range of products from national and international brands such as Babyhug, Chicco, Graco, Johnson & Johnson, Huggies, Pampers, and more.
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