Ecommerce marketplace FirstCry halts IPO plans as volatility continues
- ByStartupStory | May 16, 2022
Ecommerce marketplace FirstCry announces a proposed $ 1 billion initial public offering (IPO) by a few months, according to people in the know who said the cautious approach by the SoftBank-backed retailer follows the muted response last week to new economy issues, like that of logistics player Delhivery, as well as the broader headwinds in global markets.
“There are too many headwinds out there now, and based on multiple conversations with key stakeholders, they (FirstCry) are delaying filing the draft red herring prospectus (DRHP) by at least a month or two,” the source was quoted as saying.
According to last month’s report, FirstCry was targeting a valuation of nearly $ 7 billion and an issue size of about $ 1 billion at the time of publication. There was a report that the company wanted to review these figures as well.
Markets in the world and India were very volatile in 2022 due to various factors such as money supply restrictions and interest rate hikes, and the war between Russia and Ukraine. In addition, India’s stock market, which has surged to a record high following Burlan, which began in 2020, has suffered several startup IPOs, including Zomato and Paytm, over the past year.
Last week alone, logistics startup Delhivery was listed with a 1.63x oversubscription, but the response from private investors and high net worth individuals (HNI) was modest.
Pune-based retailers have finalized their plans to submit a draft IPO this month, but is drawing off on investor’s and stakeholder’s advice. “Compared to the amount of investment made last year, I would say the amount of new investment will be half or could be as small as a quarter,” SoftBank chief executive Masayoshi Son said on May 12.
Follow Startup Story
Related Posts
