Mahindra-owned baby products startup Firstcry is reportedly in talks to raise $100-150 million from new and existing investors as it seeks to increase its lead in the market.
According to the LiveMint report, citing three people privy to the matter, Firstcry has fortifed talks with Singapore-based Temasek Holdings, with whom it was in funding talks last year but cooled-off later. The startup is also in talks with Chinese internet giant Tencent and an unidentified Chinese investment firm to raise its next round.
Firstcry held funding talks with Temasek last year but then nothing happened in the end because of two’s differences over valuation. The companies revived talks this year and has appointed Morgan Stanley as its investment bank for the deal.
Temasek, which has recently led the $125 million funding of Noida-based PoS deploying company Pine Labs, is a minority investor in companies such as Flipkart, Ola, Byju’s, Practo and Hike.
Founded in 2010 by Supam Maheshwari and Amitava Saha, Firstcry (Brainbees Solutions Pvt. Ltd) is now poised to called as India’s largest baby products retailer and has raised more than $100 million from high profile investors including Ratan Tata, Mahindra, IDG Ventures India, New Enterprise Associates, SAIF Partners, Vertex Ventures and others.
In October 2016, Firstcry bought Mahindra’s struggling babycare business BabyOye Retail Pvt. Ltd for ₹362 crore in a cash-and-stock deal.
Headquartered in Pune, FIrstCry is one of the very few e-commerce startups that has flourished in the past three years despite competition from giants like Flipkart and Amazon India.
For financial year 2016-17, Firstcry reported a loss of ₹393 crore on revenue of ₹239 crore.
It may also be recalled that, e-commerce logistics startup Xpressbees, which is founded by Firstcry founders Supam Maheshwari and Amitava Saha, had raised funding of $35 million from China’s Alibaba, in January this year. Launched in 2015 as ‘Busybees’, Xpressbees is the logistics business offshooted from FirstCry