Bengaluru: FirstCry, Asia’s largest online portal for baby products & toys, acquires BabyOye, the franchise division of Mahindra Retail. Following the acquisition, FirstCry raises $34 million of new equity capital from Mahindra Group, Adveq, Kris Gopalakrishnan and all its existing shareholders. In this strategic move, Mahindra Retail sells its franchise business to FirstCry, and will operate all of its company stores under a FirstCry master franchise agreement. The merged entity will conduct its business under the brand name FirstCry.com - A FirstCry Mahindra Venture.
Founded in 2011 by Supam Maheshwari & Amitava Saha, FirstCry provides a wide range of baby care products and toys. Having over 20000+ items from 250+ top International and Indian brands like Mattel, Ben10, Pigeon, Funskool, Hotwheels, Nuby, Farlin, Medela, Pampers, Disney, Barbie, Gerber, Zapak, and Mee Mee, the entity has its presence on the web, mobile and through 180 physical stores today.
Speaking on the occasion, Supam Maheshwari asserts, “We are delighted to partner with a prestigious business house like Mahindra, both as a retail brand and as an investor. FirstCry.com has been at the heart of organizing the huge baby and kids market in India. Our endeavor has been to provide Indian parents with world class brands and products, unparalleled customer service and convenience. FirstCry.com will help scale up the reach of this service and experience faster. Our partnership with the Mahindra Group will bring in synergies that will help us scale and achieve our profitability goal much faster. Together, we will continue to scout for more opportunities for inorganic growth”.
As the single dominant player in the baby & kids’ requirements in India, FirstCry will now be able to increase its share through its wider retail presence and collective merchandise of high quality private label brands enabled with the ability to serve consumers of both brands.
Zhooben Bhiwandiwala, President, Mahindra Partners, proclaims, “Mahindra Retail is a key part of the diverse portfolio at Mahindra Partners. This strategic action sets the stage for significant value creation and the realization of huge synergy benefits across the business and all its stakeholders. It also reinforces our continued belief in the sector and we look forward with great optimism at the possibilities this presents”.