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    Big setback for FirstCry ahead of IPO, firm reports 6x net loss: Report

    Big setback for FirstCry ahead of IPO, firm reports 6x net loss: Report


    FirstCry, the e-commerce firm likely to file for initial public offering (IPO) this week, has reported a six fold jump in its net loss for this fiscal at 486 crore. The net loss is 515 per cent more than than FY22 figure of 79 crore, Livemint reported. FirstCry, the company offering toys, apparel and babies accessories, witnessed its revenue from operations in FY22 surge by 135 per cent from 2,401 crore to 5,633 crore. The return on capital employed (ROCE) stood at -7 per cent while EBITDA margin stood at -2 per cent.ROCE is a financial statistic used to analyse the profitability and capital efficiency of a firm. ALSO READ: Sachin Tendulkar, Infosys cofounder among buyers of FirstCry shares ahead of IPOAccording to the Livemint report, FirstCry’s income from products sales surged 2.37 times to 5,519 crore in this financial year, accounting for 98 per cent of the total operating revenue. The report cited a sharp hike in expenses resulting in widening of losses fro the company in this financial year. Firstcry’s total expenses jumped by 146 per cent from 2,568 crore to 6,316 crore during the reported year.

    FirstCry’s income from products sales surged 2.37 times to 5,519 crore in this financial year, accounting for 98 per cent of the total operating revenue.

    In another development, Softbank, which is backing FirstCry, has sold shares worth $310 million in the company.

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    The shares sold by SoftBank was bought by few high net worth individuals, PTI reported. The Japanese firm had invested $400 million in FirstCry at an enterprise valuation of $ 900 million. The Japanese business giant still has shares valued at $800-900 million which it will sell later, and is looking to make around $1.3 billion from investment in FirstCry.

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