Brainbees Solutions, the India-based operator of childcare products retailer FirstCry, is set to receive $400m in funding from internet and telecommunications conglomerate SoftBank, the Economic Times reported today.
SoftBank is expected to purchase a 42% stake in the company, valuing it at $600m to $700m pre-money. The transaction will consist purely of a direct investment and is expected to close by the end of this month.
Founded in 2010, FirstCry operates an online shop and brick-and-mortar stores across India focused on baby, child and mothercare products ranging from onesies and toys through to high chairs and cots to parenting books and maternity clothes.
The company has also launched a multimedia parenting platform and will use some of the cash to scale that product. Money has also been allocated to the development of a range of own-brand products.
Part of the funding will go towards increasing FirstCry’s online and offline footprints as it aims to fight off rivals such as Amazon and Flipkart. Some brick-and-mortar stores will be opened in partnership with overseas brands, though details were not revealed.
FirstCry has raised approximately $125m to date according to the Economic Times. It secured $34m in funding in 2016 from conglomerate Mahindra Group, IDG Ventures India, Vertex Ventures, SAIF Partners, New Enterprise Associates, Valiant Capital, Adveq and private investor Kris Gopalakrishnan.
