Firstcry Turns Profitable Ahead of IPO (1700Cr+ Revenue Posted)
Baby and kids' product e-commerce startup Firstcry has registered consolidated net revenue of Rs 1,740 crores for FY 2021. This is a over 141% jump as compared to Rs 896.7 crores in the same period of the previous year FY 2020. The company also registered profit for the first time ahead of its IPO which is expected to launch in 2022.
Summary in brief
Supam Maheshwari-led kids product company is expected to get listed on the stock market soon. The company is planning to launch its IPO in 2022 itself. The first-ever registered profit and a big leap in revenue are going to support its listing on the exchange. As said, Firstcry’s total revenue for FY21 jumped over 141% from the previous year. This is more than double growth in revenue when compared to increase from FY19 to FY20.
Thanks to the robust revenue growth, the Pune-based startup registered a profit of almost Rs 216 crores. The figure is impressive as the company had been struggling a lot to overcome losses year after year. In the previous FY, Firstcry suffered a loss of Rs 190.8 crores, while in the FY19, the loss was Rs 932.6 crores.
Firstcry’s Revenue Breakdown
From April 2, 2020 to March 31, 2021, Firstcry posted a revenue of Rs 1602.8 crores, out of which Rs 1558.8 crores came from product sales and the rest Rs 44 crores was registered from operations. To this Rs 1602.8 crores, the company added income from other sources like fixed deposits and investment to take the figure to a net consolidated revenue of Rs 1,740 crores.
The company benefited from the onset of COVID lockdown when people switched to e-commerce platforms for almost all their needs. Just like other e-retailers, Firstcry also registered an increase in sales during the pandemic.
Along with the rise in revenue, the company also witnessed an increase in expenditure. For FY21, the company spent around Rs 1,645 crores, out of which almost Rs 214 crores went for employee benefits.
Firstcry IPO: Available Details
As said, Firstcry is planning to enter the stock market through IPO in 2022. The company is already in the unicorn club after receiving $296 Mn in its Series E funding from SoftBank, a Japanese financial conglomerate.
The company boasts a good national presence with over 300 stores in 125 cities across the country. It also claims to offer a wide range of baby and kids care products through more than 2,000 brands.
As far as IPO is concerned, Firstcry has already garnered interest from big financial players like Morgan Stanley, Kotak Mahindra, and others. However, after the stock market punished Unicorns like Paytm, it will be interesting to see how Firstcry performs. Overall, it seems that registering profit will help the company to gain investors’ confidence. If the profit continues to grow the chances of successful listing through the upcoming IPO will increase.
Although we do not have any tentative date as of now, the IPO is likely to surface by the end of 2022.