Baby Steps to Billion-Dollar Valuation: The FirstCry Success Story

Company Profile

FirstCry, founded in 2010 by Supam Maheshwari and Amitava Saha, emerged as a pioneering venture in the e-commerce realm, specifically catering to baby care products. The platform revolutionized online shopping, particularly for parents.

With a dedicated team, FirstCry has experienced substantial growth, overcame challenges, and secured notable funding along the way. Explore the journey of this innovative startup, from its inception to becoming a prominent player in the online retail landscape.

FirstCry – Company Highlights

FirstCry – About and How it Works

FirstCry, a versatile online and offline brand, offers an extensive range of products catering to the needs of babies, kids, and moms. Born out of a commitment to address the challenges faced by millions of Indian parents in accessing top-notch brands and quality baby care essentials, FirstCry.com spans diverse categories like diapering, feeding, skincare, toys, clothing, footwear, and more.

With an impressive inventory boasting over 90,000 items from around 1,200 international and Indian brands, including renowned names like Mattel, Pampers, and Disney, FirstCry.com ensures a diverse and quality selection. The company is dedicated to delivering an exceptional online shopping experience, featuring reasonable prices, reliable delivery services, and responsive customer care, making parenting essentials easily accessible to all.

FirstCry – Founders/Owners and Team

FirstCry was founded by Supam Maheshwari and Amitava Saha.

Supam Maheshwari, the CEO, and co-founder of FirstCry, is a distinguished graduate of IIM Ahmedabad and holds an engineering degree from Delhi College of Engineering.

As a first-generation entrepreneur, he has played a pivotal role in founding XpressBees, a major logistics company in India. Prior to venturing into baby care products with FirstCry, Supam served as the co-founder and CEO of Brainvisa Technologies, a prominent e-learning enterprise in India. His diverse background and entrepreneurial spirit underscore his leadership in shaping successful ventures across various industries.

Amitava Saha, the COO and co-founder of FirstCry, is an accomplished professional with a master’s degree from IIM Lucknow and a BTech from IIT Varanasi.

His collaboration with Supam Maheshwari extends beyond FirstCry, as they previously joined forces for the launch of XpressBees, a prominent logistics company. Following their successful venture with XpressBees, Saha and Supam united once again for the establishment of FirstCry, India’s premier online platform for a comprehensive range of baby care products. Saha’s educational background and strategic partnership highlight his integral role in shaping innovative ventures in the e-commerce landscape.

FirstCry – Startup Story

In 2010, the inception of FirstCry took root when co-founder Supam Maheshwari recognized the scarcity of online options for purchasing baby care and kids’ products in India. As a parent himself, Supam used to procure items for his son during business trips abroad, shedding light on the untapped potential for an online platform in India. Motivated by the vision to provide Indian parents with access to top-notch global baby care brands, Supam Maheshwari and Amitava Saha initiated the journey of FirstCry, bridging the gap in the market and pioneering a new era in online parenting solutions.

Startup Launch

Initially employing an inventory-based model, FirstCry dispatched products from its warehouses in Pune, Delhi, Bangalore, and Kolkata across the country. As the venture evolved, it transitioned to a model that incorporated retailers, offering local businesses the chance to showcase and sell their products on the FirstCry platform.

Introducing diversity to its offerings, the company introduced two private labels – BabyHug for baby and kids’ apparel, and CuteWalk, specializing in footwear.

Fast forward to July 2023, FirstCry stands as a major player in the online shopping realm for kids, boasting a network of over 350 franchised brick-and-mortar stores spread across more than 125 cities in India. This strategic shift and expansion underscore FirstCry’s commitment to providing a comprehensive and accessible shopping experience for parents and caregivers nationwide.

Products of FirstCry

Food Products:

• Chocolates
• Candies
• Sweets
• Breakfast and Cereals
• Snacks
• Jams, Spreads, and Ketchup
• Milk powder containers

Diapering and Baby Care Products:

• Diapers
• Baby Wipes
• Diaper Bags
• Diaper Changing Maps
• Bed Protectors
• Potty Chairs and Seats
• Baby lotion
• Baby Shampoo

Clothing, Fashion Accessories, Footwear, and Toys also available.

FirstCry is your go-to platform, offering a comprehensive range of products for babies and kids, from food items to essential diapering and care products, and even trendy clothing, accessories, footwear, and toys.

FirstCry – Business Model and Revenue Model

FirstCry employs an integrated hybrid business model, seamlessly blending its online platforms with a robust offline presence, boasting over 400 stores, including 350 franchise outlets across India as of July 2023. A distinctive outreach initiative involves distributing ‘FirstCry Boxes’ to over 70,000 parents monthly.

This program extends congratulations to new parents by offering complimentary gift boxes in 6,000 hospitals nationwide. Filled with essentials like diapers, baby lotion, and baby oil from trusted brands like Mamy Poko and Libero, the initiative has successfully connected with millions of parents, showcasing FirstCry’s commitment to supporting families on their parenting journey.

FirstCry has achieved Unicorn status in India. This accomplishment underscores its significant presence and success in the market.

FirstCry – Shareholding

• SoftBank is the largest shareholder in FirstCry’s parent company, holding approximately 25.55% of total equity via SVF Frog (Cayman) Limited.
• Mahindra & Mahindra and Premji Invest are the second and third largest stakeholders with 10.98% and 10.36% stakes, respectively.
• Mahindra & Mahindra invested directly, while Premji Invest used its PI Opportunities I and II funds.
• Brainbees ESOP Trust is the fourth largest stakeholder, and employee-focused entities collectively own over 11% of equity.
• FirstCry’s CEO, Supam Maheshwari, is the fifth largest stakeholder with a 5.95% ownership.
• More than 100 stakeholders, including Ratan Tata, hold a combined 9.5% stake in the parent company.

FirstCry – Funding and Investors

FirstCry has raised a total of $793.7 million in funding over 11 rounds.

Here is a list of all the funding rounds witnessed by FirstCry:

FirstCry – Growth

Positioning itself as Asia’s premier online destination for baby and kids’ products, FirstCry has achieved remarkable growth, evident in the following highlights:

Product Range and Brands:

• Over 2,00,000 unique products.
• Hosts 5,800+ brands as of 2023.

Offline Presence: Boasts around 380+ offline stores across India as of January 2020.

Parenting Community: ‘FirstCry parenting’ is India’s largest community with:

• Approximately 13 million unique users monthly.
• A robust overall engagement of 92 million users monthly as of 2023.

Mobile App Reach: The FirstCry app has garnered over 10 million downloads on both Google Play Store and App Store.

Brand Ambassador: Renowned personality Mr. Amitabh Bachchan serves as the brand ambassador of FirstCry.

Geographical Reach: Extends its services to 125+ cities as of 2022.

These milestones showcase FirstCry’s expansive reach, diverse offerings, and its esteemed position in the market.

Financials

FirstCry – IPO

In a significant development dated April 28, 2022, FirstCry has undergone a transformation into a public entity, now known as Brainbees Solutions Limited, in anticipation of its upcoming initial public offering (IPO). The company has not only approved the reclassification and sub-division of equity and preference shares but has also made amendments to its Employee Stock Ownership Plans (ESOP).

Reports suggest that FirstCry is gearing up to file its Draft Red Herring Prospectus (DRHP) in the coming weeks (as on Jan,2024) ?with plans to raise ?8,300 Crore through its IPO.

Notably, only a quarter of the funds raised is slated for a fresh equity issue, with the majority earmarked for providing an exit to existing investors. The company is eyeing a substantial valuation of $7 billion in its IPO.

Unlike some recent IPOs that faced challenges, FirstCry stands out as a profitable company. Mahindra Retail, holding a 10.48% stake in FirstCry, and Mahindra Engineering and Chemical Products, owning 3.11% preference shares, have received board approval to sell up to 2% of their stakes through an Offer for Sale (OFS) during the IPO.

This move follows Mahindra’s strategic involvement since the acquisition of BabyOye, subsequently merged with FirstCry. The IPO of FirstCry appears promising, standing out in terms of profitability and investor confidence.

FirstCry – Acquisitions

FirstCry has acquired?two?organizations. The recent acquisition was?Oi Playschool?on November 28, 2019. FirstCry Oi Playschool is a chain of premium playschools focusing on safety, security, and hygiene.

In 2016, BrainBees Solution-owned FirstCry acquired Mumbai-based?BabyOye?for $54 million. BabyOye is an e-commerce portal dealing in pregnancy, infant care, and mother care products in India.

FirstCry – Competitors

FirstCry dominates the baby care market, with a strong brand association. While facing indirect online competition from platforms like Myntra and Amazon, its offline stores contend with local vendors. Despite these challenges, FirstCry’s robust brand presence and diverse offerings set it apart in the industry.

FirstCry – Startup Challenges

• The baby care segment in India is expansive and holds significant promise, but its unorganized nature poses a challenge for businesses.
• Staying relevant in this competitive landscape is imperative for FirstCry. To address this, the team needs to maintain an agile approach and consistently launch innovative and exciting strategies.
• The market demands a proactive stance, requiring FirstCry to work on its toes to capture and retain consumer interest.
• Success hinges on the ability to navigate the unorganized market by introducing distinctive and appealing strategies that set FirstCry apart.

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