After months of discussion, Japanese internet and telecom major SoftBank has committed US $ 400 million in Pune- based baby and mothercare product retailer FirstCry, according to regulatory filings. Of this, around US $ 150 million has already been infused into the company.
According to regulatory documents, the resolution for the funding was passed on January 18. After this investment, the company is estimated to be valued at around US $ 850 million, said business intelligence platform Paper.vc.
The investment is part of a larger round in which FirstCry will be raising around Rs 2,825 crore (US $ 396.34 million) from SoftBank’s US $ 93-billion Vision Fund in two tranches, the filings stated.
The funds are expected to be used by the retailer to expand its offline and online presence as well as to strengthen its technology platform.
SoftBank Vision Fund Frog based in the Cayman Islands has bought 73,166,655 equity shares in Series E round of Brainbees Solutions Pvt Ltd, the parent company of FirstCry at a nominal value of Rs.5 with a premium of Rs.381 (US $ 5.35) per share.
FirstCry has been in talks to raise capital since September 2017 from multiple investors, including Singapore state investment firm Temasek Holdings.
Firstcry was launched in 2010 by Supam Maheshwari and Amitava Saha to offer different categories of baby products ranging from clothing to school essentials, among others, from global brands like Funskool, Hotwheels, Nuby, Farlin, Medela, Pampers, Disney, etc.