FirstCry Completes Rs 146 Crore Investment in GlobalBees, Boosting Stake to 51.51%
FirstCry Completes Rs 146 Crore Investment in GlobalBees, Strengthening Its Stake
In a significant move for the omnichannel kidswear retailer, FirstCry has finalized its planned investment of Rs 146 crore in its roll-up subsidiary, GlobalBees Brands. This comes nearly six months after the initial announcement of the transaction, marking a pivotal moment in FirstCry’s growth strategy.
In a regulatory disclosure, FirstCry revealed that it has invested Rs 73 crore in the second tranche of Series C2 compulsory convertible preference shares (CCPS). This acquisition includes 2,220 shares with a face value of Rs 5 each, priced at a premium of approximately Rs 3.29 lakh per share. With this latest investment, FirstCry’s fully diluted stake in GlobalBees has increased to 51.51%, up from 51.12%.
GlobalBees, established in 2021 as FirstCry’s e-commerce roll-up arm, boasts a diverse portfolio of consumer brands, including home care products from The Better Home, jewelry from Yellow Chimes, hair care from Rey Naturals, and food items from The Butternut Company. The company has also recently expanded its horizons by acquiring a 10% stake in beauty and personal care startup Cloud Lifestyle for Rs 60 lakh.
Despite a robust 31% year-on-year revenue growth to Rs 426.5 crore for the quarter ending June, GlobalBees faces challenges, with losses widening by 6% to Rs 20.8 crore. In contrast, FirstCry reported a narrower consolidated loss of Rs 66.5 crore, down from Rs 75.6 crore a year earlier, on an operating revenue of Rs 1,862.6 crore, reflecting a 13% year-on-year increase.
FirstCry had allocated Rs 169 crore from its Rs 1,601.7 crore IPO proceeds for GlobalBees, and with this latest infusion, it has committed a significant portion of that funding, with an additional Rs 20 crore earmarked for the near future.
As FirstCry continues to bolster its investment in GlobalBees, the retail landscape is poised for further evolution, with both companies navigating the complexities of growth and profitability in a competitive market.
