FirstCry plans secondary offer at $3 billion valuation

By

Isabelle Crossley

Published
Apr 17, 2023

Clothing, footwear, and baby care retailer FirstCry is in talks with a number of sovereign funds to facilitate a stake sale by several of its shareholders. The business is pursuing a pre-initial public offering funding round at a valuation of $3 billion.

“Talks are ongoing for a few months, but the deal is yet to be finalised,” an anonymous source close to the matter told ET Tech. “Middle Eastern sovereigns and some pension funds may come on board in this secondary share sale. Deal contours can change as discussions move forward.” 
 
FirstCry is a multi-brand retailer which means that, in accordance with India’s foreign direct investment regulations, it can have up to 51% of the business owned by foreign entities. The business is based in Pune and currently has domestic funds owning the majority of its shares. 

The business had been pursuing a funding round with Kedaara Capital at a slightly higher valuation but the talks fell through, ET Bureau reported. FirstCry had planned to file an IPO in 2022 but uncertainty in the markets, fuelled by geopolitical unease, caused the business to delay its plans. The omni-channel retailer has not yet filed its audited 2022 financial year results with the Ministry of Corporate Affairs but expects to report a profit for period.