Home / Knowledge / News / Apparel/Garments / FirstCry acquires Mahindra BabyOye for Rs 362 crore
FirstCry acquires Mahindra BabyOye for Rs 362 crore
17
Oct '16
FirstCry, e-store for baby products owned by BrainBees Solutions has acquired the franchise division of Mahindra Retail that owns babycare business BabyOye for Rs 362 crore. Mahindra & Mahindra sold it on a slump sale basis and will continue to invest in the business that will now be conducted under the brand name FirstCry.com - A FirstCry Mahindra Venture.

“A business transfer agreement has been executed by and between Mahindra Retail Pvt Ltd (MRPL), a subsidiary of the company, Brainbees Solutions (FirstCry) and founder of FirstCry to transfer the franchise division of MRPL (BabyOye) as a going concern on a slump sale basis to FirstCry,” said Mahindra & Mahindra in a BSE filing.

The total lump sum consideration for the transfer of franchisee division on a slump sale basis is Rs 362.1 crore. FirstCry will issue shares worth Rs 354.6 crore to the company and will make a payment of 7.5 crore in cash.

“FirstCry additionally raises $34 million of new equity capital from the Mahindra group, Adveq (a Large Pvt Equity Fund), Kris Gopalakrishnan and participation from all existing shareholders,” added the filing.

Supam Maheshwari, founder of FirstCry, will continue as the CEO of the combined entity. Following the acquisition, FirstCry.com will have a parent base of over 4 million and a footprint of over 300 stores spread across 125 cities.

“I believe that the future belongs to click and brick businesses, and that consolidation is the way to thrive and establish industry leadership. We, at the Mahindra group, are therefore delighted to join hands with an innovative brand like FirstCry. I am optimistic that this consolidation of the strengths that both groups bring to the partnership will result in a winning proposition,” said Anand Mahindra, chairman and managing director of Mahindra group.

“We are delighted to partner with a prestigious business house like Mahindra, both as a retail brand and as an investor. 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,” said Maheshwari.

Mahindra had acquired online kids retailer BabyOye in 2015 and had renamed the stores as Babyoye by Mahindra. (KD)

Fibre2Fashion News Desk – India


Must ReadView All

US merchandise trade with India, 2012–16; Courtesy: USITC

Textiles | On 27th Jul 2017

India becomes US’ 9th largest trading partner in 2016

In 2016, India became the United States’ 9th-largest single-country...

Textiles | On 27th Jul 2017

GST will lead to further increase of MMF prices

The Goods & Services Tax (GST) rolled out on July 1, 2017 is not...

Textiles | On 27th Jul 2017

Global yarn production improved 30% q-o-q in Q1: ITMF

In the first quarter of 2017, global yarn production rose by almost...

Interviews View All

Prabu Mohanram
Balavigna Weaving Mills Pvt Ltd

The biggest challenge that the weaving industry faces is high price

Cindy McNaull
Cordura

We have broad range of options in durable fabrics

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X