FirstCry, the IPO-linked e-commerce unicorn, reported a six-fold jump or 515% increase in its net loss for FY23 at ₹486 crores of ₹79 crore in FY22, reports said.
The company’s revenue from operations during the fiscal year 2022-2023 increased 135% to ₹5,633 crore from ₹2,401 crore in FY22 led by strong demand. Its ROCE stood at -7%, while EBITDA margin was at -2%.
The SoftBank-backed FirstCry offers toys, clothing and accessories for babies, children and mothers through online and physical stores.
Read also: FirstCry IPO: E-commerce platform all set to file drafts to raise more than $600 million, says report
The company’s income from the sale of products increased 2.37 times to ₹5,519 crore in FY23. This income accounted for 98% of the total operating income. Internet display costs (advertising) and other operating sources made up the rest, the report said.
A sharp rise in expenses led to widening losses for the Pune-based startup in FY23. Its total expenses jumped 146% to ₹6,316 crore during the reported year of ₹2,568 crore, YoY, entrackr reported.
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The cost of procurement of materials, which accounted for 62% of the total cost, rose 2.5 times to ₹3,935 crore from ₹1,572 crore, YoY.
It was previously reported that the omnichannel retailer intended to file its draft IPO papers in the coming days after delaying its public listing in the previous year due to volatile market conditions.
FirstCry plans to raise $500-600 million from the initial public offering (IPO), seeking a valuation of around $3.5-3.75 billion, according to multiple reports.
Read also: FirstCry IPO: Sachin Tendulkar, Infosys founder and others likely to buy shares of e-commerce company ahead of release
Ahead of the IPO, its main stakeholder SoftBank strategically unloaded additional shares, creating an opportunity for family offices and prominent investment firms to secure their positions in the company ahead of its IPO.
Through this transaction, SoftBank cut its ownership in FirstCry to less than 25% by divesting shares valued at ₹600 crores, Economic Times had reported A few years ago, the investment firm held about 30% of the company.
According to a report, family offices of Indian cricketer Sachin Tendulkar, Ravi Modi of ethnic wear brand Manyavar, Infosys co-founder Kris Gopalakrishnan, and TVS group family were among the buyers who bought equity shares of the company.
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Published: 27 Dec 2023, 14:01 IST