Ecommerce: FirstCry FY15 losses up 50% at Rs 63 crore
Baby care e-commerce platform FirstCry reported losses of Rs 62.73 crore for the fiscal year ended March 31, 2015, a 50% rise from Rs 41.71 crore for FY14. FirstCry is run by Pune-based Brainbees Solutions which released its financials for FY15 on the website of the Registrar of Companies on Friday.
FirstCry reported total revenues of Rs 118.08 crore up from Rs 73.78 crore, a year ago. It works on a hybrid business model with inventory and physical outlets across India.
The company’s inventory-led model, resulted in Rs 132.51 crore purchase of stock-in-trade for the year which helped it secure Rs 109.54 crore in operating revenue.
Besides, purchase of inventory, FirstCry incurred employee benefit expense of Rs 24 crore which stretched its total expenses to Rs 180.81 crore. The total expense jumped 57% from Rs 115.5 crore in FY14.
FirstCry operates over 150 branded franchisee across India selling baby care and maternity products and has tie-ups with brand such as Funskool, Pampers, Disney, Barbie, Hotwheels, Fisher Price and Ben10, among others. In 2015, baby care product registered growth rate of 53%, behind apparel with 69.5 % and electronic with 62%, according to a research by industry body ASSOCHAM.
Earlier, this week, Ratan Tata had invested an undisclosed amount in the e-commerce portal. On the recent funding, Supam Maheshwari, founder and chief executive officer of Brainbees said, “ a positive nod from a business leader of Mr Tata’s stature is a great vote of confidence in the way we have created the eco-system and validation of the business approach leading to definitive path to profitability.”
So far, FrirstCry has raised $69 million from investors such as IDG Ventures India, SAIF Partners, Temasek Holding, Vertex Ventures, Valiant Capital and New Enterprise Associate. In April 2011, it had raised Series A funding of $4 million from SAIF and an additional $14 million from IDG Venture and SAIF via Series B in February 2012.
In January 2014, it had raised $ 15 million in Series C funding and closed Series D with $ 36 million in April 2015. In the kids segment, FristCry competes with players such as FlintoBox, Mycity4kids, KleverKid, Tiny Steps, Babyoye, Hushbabies, Toonz, and Precared, among others.
India’s FirstCry.com is Ratan Tata’s newest investment baby
Ratan Tata has started the year with a bang as today’s funding marks the industrialist’s fourth investment in 2016
Supam Maheshwari, Founder & CEO of Brainbees
Ratan Tata, one of the most prolific and visible investors in India, made an undisclosed investment into Brainbees Solutions Ltd. — the owner of the country’s largest omni-channel baby products brand FirstCry.com — the company announced today.
The latest investment brings the total amount raised by Brainbees over multiple rounds to US$69 million.
The VC firm IDG Ventures India, of which Tata is a Senior Advisor, is also an investor in Brainbees. Other well-known VCs include NEA, SAIF Partners, Valiant Capital and Vertex Ventures.
Tata has been on a bit of an investment splurge to start 2016 as this is the fourth company he has invested in this month.
On January 19, he invested in online coupon company CashKaro. A couple of weeks before the CashKaro deal, Tata put money into two companies in three days: Online pet care platform Dogspot on January 4 and startup analytics firm Tracxn on January 6.
Speaking on the investment in his company, Brainbees Founder and CEO Supam Maheshwari said in an official statement:
“A positive nod from a business leader of Mr. Tata’s stature is a great vote of confidence in the way we have created the ecosystem and validation of the business approach leading to definitive path to profitability.”
The company claims 2 million customers, with more than half of its users coming via mobile.
It owns 150 FirstCry-branded brick-and-mortar stores in 100 cities across India. Economic Times reported on January 8 that the company wants to ramp up that number to 700.
In a rather unique marketing strategy, the company hands out over 1 million FirstCry GiftBoxes to new mothers every year.
FirstCry - The latest beneficiary of Mr Ratan Tata’s investments ………………..
Ratan Tata seems to continue his run with investments in startups in 2016 as
well. This time round its ‘FirstCry’, the baby-care platform which set foot in
the e-commerce world in 2010.
With a presence across desktop, mobile and offline routes, ‘FirstCry’ has carved a
niche for itself, offering baby and maternity products in India, across
platforms. It enjoys the patronage of more than 2 million
customers and with investments from one of the leading industrialists of the
country, seems like good times ahead for them.
No wonder then, ‘Brainbees
Solutions’, Founder and CEO,
Supam Maheshwari, states happily that FirstCry has outgrown competitors and has
become the dominant driver in this space across mobile, online & offline
New Delhi, Jan 21 (ANI): Maintaining the slew of investments in various startups globally, Ratan Tata has now chosen upon baby care platform FirstCry.
The Chairman Emeritus of Tata Sons and Senior Advisor to IDG Ventures India has invested an undisclosed amount in his personal capacity into Brainbees Solutions, which owns the FirstCry.com brand.
FirstCry is omni-channel player with presence across desktop, mobile and offline routes offering baby and maternity products in India. Operational since 2010, the startup has over two million customers and 150 FirstCry branded franchisee offline stores across 100 cities in the country.
“Our vision is to simplify parenting by creating the necessary ecosystem and we have outgrown competitors to become the dominant driver in this space across mobile, online and offline channels,” Brainbees Solutions founder and CEO Supam Maheshwari said.
“It is great vote of confidence in the way FirstCry has created the ecosystem and validation of the business approach leading to definitive path to profitability,” Maheshwari added.
Brainbees has raised USD 69 million in capital over multiple rounds from investors including IDG Ventures India, SAIF Partners, Vertex Ventures, Valiant Capital and NEA. (ANI)
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