Ola Electric and FirstCry, Fueled by SoftBank, Ready IPO Roadmap for 2024
E-Commerce Marvels, FirstCry Targets $4 Billion Valuation, Ola Electric Charges Ahead with Lithium-Ion Vision
19 December 2023
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Kunal Tyagi
Ola Electric and FirstCry, backed by SoftBank, are set to file draft IPO paperwork, with SoftBank's positive valuation assessment generating optimism among investors.
FirstCry, planning to raise $500 million, aims for a post-Lok Sabha Elections 2024 listing. The company targets a $4 billion valuation, with 60% of funds allocated to the offer for sale (OFS) and the rest as the primary component.
Ola Electric, engaging Kotak Mahindra Capital and Goldman Sachs, plans an early 2024 IPO launch. The funds will boost electric vehicle sales and establish India's first lithium-ion cell manufacturing facility in Tamil Nadu's Krishnagiri.
In a significant development, Ola Electric and FirstCry, both backed by SoftBank, are set to file their draft IPO paperwork, paving the way for potential initial public offerings (IPOs) in the early months of 2024. The move comes on the heels of SoftBank's positive assessment of the valuation of both firms, fostering optimism among investors. FirstCry, a childcare supply company, plans to raise $500 million, with 60 percent allocated to the offer for sale (OFS) component and the remainder as the primary part.
The tentative timeline for the FirstCry IPO suggests a listing post the Lok Sabha Elections in 2024, while Ola Electric is poised to launch its IPO sooner. Ola Electric has engaged Kotak Mahindra Capital and Goldman Sachs for its IPO launch, aiming to enhance its capital to boost electric vehicle sales and establish India's first lithium-ion cell manufacturing facility in Tamil Nadu's Krishnagiri.
FirstCry, positioning itself as the second Indian vertical e-commerce platform to go public after Nykaa, targets a valuation of around $4 billion at the time of the IPO. The issue size is estimated to be between $500-600 million. SoftBank, a key investor in FirstCry, plans to dilute its shares below 26 percent through the IPO, complying with India's FDI laws for e-commerce.
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For FirstCry, the IPO journey is a culmination of postponed plans due to volatile market conditions in the previous year. The company attracted investments of ₹435 crore in August from prominent family investment offices within India Inc., including MEMG Family Office, Sharrp Ventures, and DSP family office. The diversified product offerings for children and mothers through online and offline channels position FirstCry as a formidable player in the e-commerce landscape.
Simultaneously, Ola Electric, another SoftBank portfolio company, is gearing up to file its Draft Red Herring Prospectus (DRHP), seeking to capitalize on the positive market sentiment. The valuation markup by SoftBank reflects the investor's confidence in the prospects of Ola Electric and FirstCry ahead of their IPOs. As both firms prepare to disclose their IPO draft by December 29, the Indian market eagerly awaits the next wave of IPOs, underlining the continued growth and dynamism in the startup ecosystem.
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