FirstCry talking with potential investors
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Indian online baby products retailer FirstCry is talking with potential investors, including Singapore government investment fund Temasek Holdings, to raise equity financing of about US$100 million (Rs665 crore).
FirstCry owner Brainbees Solutions is ultimately seeking to raise $400-500 million, reports The Economic Times. The Pune-based company was estimated to be worth $300-350 million when it last raised capital 12 months ago.
Two years ago, FirstCry spun off its logistics arm Xpressbees Logistics as an independent business. A year ago it acquired Mahindra Retail for about Rs362 crore. The Mahindra Group subsidiary owned the Babyoye brand.
Government-backed investment company Temasek manages assets worth about $275 billion globally. In India it has backed online marketplace Snapdeal, automobile classified portal CarTrade, and online insurance aggregator PolicyBazaar, as well as other companies.
Meanwhile, India’s baby and child-specific product market is expected to grow at a CAGR of 8 per cent, reaching Rs2940 crore by 2021, according to a Euromonitor report.
Questions & Answers
Q.Which government investment fund is reportedly in discussions with FirstCry?
Which government investment fund is reportedly in discussions with FirstCry?
FirstCry is reportedly in talks with Temasek Holdings, a Singapore government investment fund. Temasek manages substantial global assets and has previously invested in other Indian online businesses like Snapdeal and PolicyBazaar.
Q.How much capital is FirstCry's owner ultimately trying to raise?
How much capital is FirstCry's owner ultimately trying to raise?
Brainbees Solutions, the owner of FirstCry, is ultimately seeking to raise between US$400 million and US$500 million. The current discussions are aiming for an initial equity financing of about US$100 million.
Q.What was FirstCry's estimated valuation when it last raised capital?
What was FirstCry's estimated valuation when it last raised capital?
When FirstCry last raised capital 12 months ago, the company was estimated to be worth between US$300 million and US$350 million. This valuation precedes its current efforts to raise further equity financing.
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