[Update] FirstCry Invests INR 73 Cr In Globalbees

Update | April 5, 12:55 AM

A couple of weeks after announcing its plans to infuse INR 146 Cr in its ecommerce roll up business Globalbees, FirstCry on Friday (April 4) said it has transferred the first tranche of the capital to the tune of INR 73 Cr in its subsidiary.

In an exchange filing, FirstCry said that Globalbees allotted 2,220 Series C2 compulsorily convertible preference shares (CCPS) to the company at a face value of INR 5 each and at a premium of INR 3.28 Lakh apiece.

With this, FirstCry’s shareholding in Globalbees has increased to 51.12% from 50.73% earlier.

“As part of Series C2 CCPS issuance, Globalbees, a material subsidiary of the company, has allotted total of 3,041 Series C2 CCPS for an aggregate consideration of INR 1,00,00,32,850 (INR 100 Cr) … to its existing shareholders with whom the above said Series C2 share subscription agreement has been executed,” the filing said.

Original | March 26, 10:38 AM

Omnichannel kidswear brand FirstCry will invest INR 146 Cr (about $17 Mn) in its ecommerce roll up business Globalbees Brands Private Limited.

The investment will be made by way of subscription to preference shares of Globalbees in one or more tranches over the next 12 months, FirstCry’s parent Brainbees said in an exchange filing.

Globalbees, the house of brands subsidiary of FirstCry, operates as a brand aggregator, acquiring, managing and scaling a portfolio of D2C brands across categories such as personal care, home care, fashion and lifestyle.

It competes with the likes of Mensa Brands, Upscalio, Evenflow among others in the wider house of brands category, as well as vertical-specific players as well such as for home decor and interiors, or and lifestyle.

Additionally, the Supam Maheshwari-led unicorn will invest about INR 21 Cr (about $2.4 Mn) in its wholly-owned foreign subsidiary Firstcry Management DWC LLC, UAE (FC Management), as per the company’s exchange filing. The proceeds will be used to set up stores and warehouses in Saudi Arabia.

Following the announcement, shares of FirstCry slipped nearly 5% during the intraday trading today to hit an all-time low of INR 355.20 apiece on the BSE.

Behind FirstCry’s Diversification Push: After building an empire around its core kids and mother care segment, FirstCry is expanding into broader consumer categories with an eye on achieving profitability.

Soon after the INR 4,194 Cr IPO last year, GlobalBees increased its stake in consumer appliances brands Frootle and Wellspire, spending more than INR 106 Cr in two all-cash transactions.

It also infused an additional INR 8 Cr in the D2C brand The Butternut Co, and purchased additional stake in Solarista Renewables, the company behind the ‘The Clownfish’ brand, for INR 5.88 Cr.

The diversification into new consumer segments has allowed FirstCry to scale its revenue. The company, out of which INR 422.3 Cr came from its roll up business.

On the back of growth in its top line, FirstCry managed to trim its consolidated net loss by nearly 70% year-on-year to INR 14.8 Cr during the December quarter.

 

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