FirstCry – A Journey of Success

In the competitive Indian market, you’ll find a ton of startups trying to mark their presence. But there’s something special about those few that stand out. Such startups are the ones who bring fresh ideas, truly get what customers want, and can keep up with the ever-changing market. One name that shines in this crowd is FirstCry. It’s worth mentioning that FirstCry has achieved success and has become a game-changer in the online baby and children’s products market. 

First, Cry’s journey shows how they grew strategically, focused on customers, and proved that Indian startups can become locally and nationally significant. Today, FirstCry is recognized as a critical player in the market, facing off against numerous established brands. This blog will discuss FirstCry’s remarkable journey, how it evolved into a significant player in the baby and children’s products domain, and what strategies the startup follows toward b an IPO.

First Cry – Company Overview:

FirstCry is a Pune, India-based, renowned startup in the e-commerce domain specializing in offering baby and children’s products. Established to address the need for a one-stop shop for high-quality baby essentials, such a startup has grown into a comprehensive platform that delivers a wide range of baby care items, including diapering, feeding and nursing, skin and health care, toys, clothes, footwear, fashion accessories, and much more.

The baby care brand FirstCry aims to offer quality products at pocket-friendly prices. This includes a great online shopping experience, speedy and dependable delivery service, and responsive customer support.

Founded to cater to the evolving needs of modern parents, FirstCry has attained immense popularity due to its diverse product offerings and solid online presence. Such an innovative company offers a convenient online shopping experience and operates physical stores, bridging the gap between traditional retail and e-commerce.

As FirstCry prepares to go public with an IPO in 2023, it stands as one of the potential Indian startups in the competitive e-commerce landscape. Its journey from a startup to a market leader showcases its dedication to customer satisfaction and adaptability in a rapidly changing market. 

Till 2016, FirstCry.com added many other product inventories, and now it features over 90,000 items from approximately 1,200 renowned international and Indian brands. Prominent brands such as Mattel, Ben10, Pigeon, Funskool, and Hotwheels are available on the platform.

FirstCry Founders:

Supam Maheshwari and Amitava Saha introduced FirstCry in 2010 to deliver baby care products to the masses. In 2010, both founders started the company because they recognized the need for a convenient platform to shop for baby and children’s products. Supam Maheshwari, who studied at IIM Ahmedabad, knew a lot about business and how to meet customer needs. He has co-founded XpressBees, one of the largest logistics companies in India.  

On the other hand, Amitava Saha, the COO and co-founder of FirstCry, brought technical skills to the team, having worked in technology for years. Together, they created FirstCry, aiming to make it easier for parents to find everything they need for their kids. Their dedication to customers and innovative thinking have made FirstCry successful in e-commerce.

Initially, FirstCry operated on an inventory-based model, shipping products from its warehouses in Pune, Delhi, Bangalore, and Kolkata across the country. After a few years, the company expanded its approach by inviting local retailers to join its platform, offering them the opportunity to sell their products on its website.

Additionally, FirstCry introduced two private labels: BabyHug, specializing in baby and kids’ apparel, and CuteWalk, a footwear brand. Today, FirstCry is one of the largest online shopping platforms for kids. 

FirstCry – Business Model:

Currently, FirstCry operates with an integrated hybrid business model, combining online platforms and physical stores. In addition to its substantial online presence, the company boasts over 400 stores, including 350 franchise locations across India, as of July 2023.

As reported in 2022, FirstCry also runs a unique program that reaches over 70,000 parents monthly, distributing ‘FirstCry Boxes’. These boxes are given as tokens of congratulations to new parents in approximately 6,000 nationwide hospitals. Each box contains essential items like diapers, lotion, and oil from trusted brands such as Mamy Poko and Libero. Through this initiative, FirstCry has touched the lives of millions of parents across India.

FirstCry’s Competitors:

FirstCry has established a significant presence in the market, often being the go-to choice for newborn care. While there isn’t a direct rivalry that competes head-on with FirstCry, there are some noteworthy factors to consider in its competitive landscape.

In the online space, platforms like Myntra and Amazon offer a range of products, including baby and children’s items, and may attract similar customers to FirstCry’s online offerings.

In physical stores, local vendors and entrepreneurs could compete with FirstCry’s brick-and-mortar outlets, serving the needs of parents and caregivers seeking baby and children’s products.

Despite its strong market position, FirstCry remains watchful and committed to upholding its reputation as a trusted destination for all aspects of baby and child care in the face of evolving competition.

FirstCry – Funding Overview:

FirstCry’s journey to becoming a significant player in the baby and children’s product market has been accompanied by substantial investments from various sources, totalling $741.4 million across ten rounds. Notably, on March 30, 2021, the company secured $313 million in funding through a secondary market transaction and a venture round.

The significant moment in FirstCry’s funding history came in February 2020 when SoftBank led a $296 million investment round, propelling the company to unicorn.

Valuation:

FirstCry has become India’s unicorn, with a recent valuation of $1.9 billion. It’s important to note that this valuation is based on FirstCry’s projections, as there hasn’t been a recent valuation study to substantiate these unicorn claims. The company also raised $13 million (INR 95 crore) in equity capital from pi Ventures through its opportunity fund I. In addition, significant investors like TPG, ChrysCapital, and Premji Invest injected around $315 million into FirstCry, further solidifying its valuation at approximately $1.9 billion.

Growth and Revenue:

FirstCry’s financial performance demonstrates its remarkable growth. In FY20, the company’s revenue surged by an impressive 65.8%, escalating from $73.59 million (INR 535 crore) in FY 2019 to $122.07 million (INR 887.5 crore) in FY 2020.

Looking at the latest financials for FY21, it’s evident that FirstCry, under the leadership of Supam Maheshwari, continued its upward trajectory. According to documents dated April 4, 2022, the Pune-based baby and kids marketplace reported a profit of INR 215.94 crore, a significant improvement from the previous year’s deficit of INR 190.8 crore. Moreover, the company’s consolidated sales soared by a remarkable 141.3%, reaching INR 1740 crore in the same year.

FirstCry IPO – Making a Public Debut

FirstCry has become one of the leading players in the baby care market. As FirstCry moves forward, it looks set to continue its path of innovation and expansion in the retail sector. Working in both online and offline segment the company has successfully crawled to the heights of eminence with its launch of IPO scheduled for the 6th of August 2024. With the baby care market expected to grow at a CAGR of 17.25% the market is expected to reach a value of USD 38.51 billion by 2029.