Japanese conglomerate SoftBank has reportedly divested its stake in the prominent Indian e-commerce platform, FirstCry, to three Indian business family groups. This strategic move has translated to a substantial investment of approximately Rs 435 crore. The groups partaking in this venture are the MEMG Family Office led by Ranjan Pai, Sharrp Ventures spearheaded by Harsh Mariwala, and DSP Family Office helmed by Hemendra Kothari.
These significant investments were channeled through a secondary share sale, according to ET. Of particular note, Ranjan Pai's MEMG Family Office undertook a noteworthy investment of Rs 250 crore into FirstCry on August 14. However, CNBC-TV18 has not been able to independently verify this news update.
Through this secondary share sale, SoftBank, which initially boasted a substantial 29 percent stake in the company, strategically pared down its ownership by approximately 1.5-2 percent. Supam Maheshwari, the Chief Executive of FirstCry, expressed gratitude to the early investors for their instrumental role in the company's success.
“Our early investors have been instrumental in our success, and we are delighted to have helped deliver multi-fold return to our investors. I welcome our new investors who bring with them an exceptional track record and knowledge of scaling large successful businesses in India, that will be highly valuable in our journey ahead,” Maheshwari told ET.
FirstCry has also garnered significant support from notable investors such as Premji Invest, a subsidiary of Wipro's visionary Azim Premji, and Mahindra Retail. Impressively, Premji Invest holds a substantial ownership stake ranging between 9-11 percent, while Mahindra Retail commands a noteworthy 12-13 percent stake.
Reflecting on this significant development, Ranjan Pai expressed his enthusiasm for the brand's success, attributing it to the founders' unwavering focus on exceptional execution. He conveyed his eagerness to capitalise on the burgeoning growth within India's consumer sector and actively contribute to the advancement of this thriving segment, ET reported.
In addition to Ranjan Pai, SoftBank is reportedly in the process of selling its stake to two other Indian entities. SoftBank aims to value its stake at $3 billion, with the funding serving as a pre-IPO round for FirstCry. The sale is expected to formalize around $100 million worth of secondary shares, resulting in a reduction of SoftBank's holdings to a portion of its initial 29 percent stake in the company.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Lok Sabha Election 2024: Is it mandatory for employers to give paid holiday on voting day? | Explained
May 20, 2024 10:07 AM
Lok Sabha Elections 2024 | How critical is Phase-5 for both NDA and I.N.D.I.A
May 20, 2024 7:30 AM