Mahindra Retail To sell upto 2% of its Stake during FirstCry’s $1 Bn IPO
- ByStartupStory | May 7, 2022
Mahindra Retail has received board approval to sell up to 2 percent of its stake in BrainBees, the parent company of marketplace FirstCry, via an Offer For Sale as part of a share sale during the startup’s Initial Public Offering.
In a regulatory filing, Mahindra & Mahindra stated, “The Strategic Investment Committee of the Board of Directors of the M&M today considered and accorded its approval to divest up to 94.46 lakh Equity Shares of INR 2 each representing up to 2 percent of Brainbees Solutions Private Limited on a fully diluted basis, by way of Offer for Sale of Equity Shares as part of the proposed Initial Public Offering of BrainBees.”
The company also added that the actual number of shares of Brainbees to be divested would be decided by the company later. M&M noted that the selling price of each share would be fixed based on the determined issue size of the IPO, in consultation with Brainbees and several other stakeholders.
As of March 2021, Mahindra Retail owned 10.48% in FirstCry, while another subsidiary Mahindra Engineering and Chemical Products, held 3.11% in the startup as preference shares. Mahindra Group in the year 2015 acquired BabyOye and merged it with FirstCry. During that merger, Mahindra Retail had picked up a minority stake in BrainBees.
FirstCry was founded in 2010 by Amitava Saha and Supam Maheshwari. The e-commerce unicorn at present offers different categories of baby and kids products, from clothing to other essentials. First Cry is backed by marquee names including SoftBank, Valiant Capital Partners, New Enterprise Associates, and IDG Ventures. The e-commerce unicorn has so far raised USD 741.4 Million in funding rounds over the years. In the kids and infant category, FirstCry’a main competition includes Hopscotch, BabyMori, Shumee, and Kids Stop Press, among others.
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