In the realm of e-commerce, serving the needs of children and infants comes with unique challenges and responsibilities. FirstCry, established in 2010, emerged as a pioneer in Asia’s baby care e-commerce segment. This case study delves into the journey, business model, growth, challenges, and future prospects of FirstCry, with a special focus on its financial aspects including revenue, funding, and acquisitions.
FirstCry was conceptualized in 2010 by Amitava Saha, Sanket Hattimattur, Prashant Jadav, and Supam Maheshwari with a singular focus: to provide top-notch baby care products to parents conveniently. At its inception, online platforms for baby care products were scarce in India, creating a void in the market that FirstCry aimed to fill. With headquarters in Pune, Maharashtra, FirstCry embarked on its journey to revolutionize baby care retailing.
Brands and Products:
FirstCry boasts an extensive inventory comprising over 200,000 products from both Indian and international brands. From diapers to apparel, toys to skincare, and everything in between, FirstCry offers a one-stop destination for parents to procure quality products for their children. Additionally, subsidiaries like Babyhug and Cutewalk further diversify its offerings, catering to clothing and footwear needs.
Business Model:
FirstCry drives an innovative online-to-offline (O2O) business strategy, blending digital convenience with physical retail presence. This hybrid model aims to attract online customers to offline stores, offering them a seamless shopping experience across channels. Moreover, strategic partnerships with hospitals allow FirstCry to reach new parents through the ‘FirstCry Box’ initiative, enhancing brand visibility and customer acquisition.
Revenue Model:
With a revenue of INR 897 Crores, FirstCry has solidified its position as a unicorn in India’s e-commerce landscape. Leveraging its hybrid business model and diverse product offerings, FirstCry generates revenue through online sales, offline stores, and subsidiary brands like Babyhug and Cutewalk. Moreover, initiatives like the ‘FirstCry Box’ drive customer engagement and foster brand loyalty, contributing to revenue growth.
Firstcry Financial Overview:
Revenue:
| Financial Metric | FY20 | FY21 | FY22 |
|---|---|---|---|
| Operating Revenue | Rs 815 crore | Rs 1,603 crore | Rs 2,401 crore |
| Total Expenses | Rs 1,088 crore | Rs 1,645 crore | Rs 2,568 crore |
| Profit/Loss | Loss of Rs 191 crore | Profit of Rs 216 crore | Loss of Rs 79 crore |
| Cash from Operations | Deficit of Rs 300 crore | Deficit of Rs 67 crore | Deficit of Rs 142 crore |
Expenses Breakdown:
| Expense Category | FY21 | FY22 |
|---|---|---|
| Cost of materials consumed | Rs 1,046 crore | Rs 1,572 crore |
| Employee Benefits | Rs 214 crore | Rs 339 crore |
| Advertising promotional | Rs 164 crore | Rs 269 crore |
| Courier cost | Rs 38 crore | Rs 61 crore |
| Subcontractor cost | Rs 36 crore | Rs 51 crore |
| Other | Rs 147 crore | Rs 276 crore |
Funding:
FirstCry has raised a total of $793.7 million in funding over 11 rounds. Notable funding rounds include:
- Series E (Jan 2022): $149.4 million from SoftBank Vision Fund
- Series E (Feb 2020): $150 million from SoftBank Vision Fund
- Venture Round (Mar 2021): $13 million from Premji Invest
- Secondary Market (Mar 2021): $300 million from TPG, ChrysCapital, and Premji Invest
Acquisitions:
FirstCry has made strategic acquisitions to enhance its market presence and offerings. Notable acquisitions include:
- BabyOye (Oct 2016): Acquired for $54 million, BabyOye was an e-commerce portal dealing in pregnancy, infant care, and mother care products in India.
- Oi Playschool (Nov 2019): This acquisition added a premium chain of playschools focusing on safety, security, and hygiene to FirstCry’s portfolio.
Shareholding Pattern:
| Shareholder | Percentage |
|---|---|
| Founder | 6.29% |
| Fund | 76.35% |
| Enterprise | 13.84% |
| Angel | 0.02% |
| Other People | 0.25% |
| ESOP | 3.25% |
Challenges and Future Prospects:
While FirstCry serve a dominant presence in the baby care e-commerce space, challenges persist, particularly in addressing the unorganized nature of the market and staying ahead of competitors. However, with a robust business model, strong financial backing, and strategic acquisitions, FirstCry is well-positioned to capitalize on the growing demand for baby care products in India. As it prepares for an IPO, FirstCry aims to further consolidate its market position and drive sustained growth and profitability in the years to come.
FirstCry’s journey from a early startup to Asia’s largest online store for baby and kids’ products signifies its immense growth potential. As it continues to innovate and expand its offerings, FirstCry remains committed to its mission of providing top-quality products and unparalleled convenience to parents across India. With a solid financial foundation, strategic acquisitions, and a customer-centric approach, FirstCry is poised for a bright and prosperous future in the dynamic landscape of e-commerce.
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