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Stake sale · Commerce & Consumer Brands

TPG sells FirstCry stake for Rs 202 crore

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Date
Company
FirstCry
What it does
Online kids product marketplace
Kind
Stake sale
Amount
₹202 Cr
Sector
Commerce & Consumer Brands

What they do

FirstCry operates an online marketplace and physical stores offering a wide range of baby, toddler and kids products across India

What happened

TPG exited its 2.21% holding in FirstCry by selling about 1.2 crore shares at ₹175.15 each, raising roughly Rs 202 crore

Why it matters

The sale marks the latest reduction of TPG’s stake since the 2024 IPO and signals continued institutional turnover in the fast‑growing kids‑commerce market

The details

  • TPG’s investment arm NewQuest Asia Investments III sold its entire 2.21% stake in FirstCry, amounting to about 1.2 crore shares.
  • The shares were sold on the NSE at ₹175.15 per share, generating roughly ₹202 crore in proceeds.
  • Goldman Sachs Investments Mauritius purchased 68 lakh shares for about ₹119 crore, becoming a major buyer in the transaction.
  • The remaining shares were sold to undisclosed buyers, with no further details disclosed.
  • The bulk deal represented a discount of about 2.4% to the previous closing price.
  • The transaction occurred after FirstCry’s Q1 FY27 results showed a 35% reduction in net loss to ₹44 crore and a 13% rise in revenue to ₹2,106.2 crore.
  • The sale follows TPG’s initial investment in 2021 and gradual divestment after FirstCry’s 2024 IPO.

The bigger picture

  • TPG’s exit reduces its exposure to the Indian kids‑commerce sector, where competition and high operating costs persist.
  • FirstCry remains loss‑making despite revenue growth, highlighting the challenge of achieving profitability at scale.
  • The bulk sale comes amid broader market activity, with other PE investors also exiting Indian stocks on the same day.

About the business

  • FirstCry runs an e‑commerce platform that sells baby, toddler and kids apparel, toys, gear and maternity items.
  • It operates a network of physical stores and preschools across major Indian cities, providing offline shopping and early‑education services.
  • The company earns revenue from product sales, marketplace commissions, and subscription services such as Intellikit and Intellibaby.
  • It offers same‑day and next‑day delivery, cash‑on‑delivery and EMI financing through major banks, enhancing convenience for Indian families.
  • The platform hosts a wide range of national and international brands, guaranteeing product authenticity and localized customer support.
  • FirstCry’s mobile apps on iOS and Android enable on‑the‑go shopping and parenting tools, driving high user engagement.
  • The business also provides parenting content, growth trackers and health advice through its FirstCry Parenting portal.

The deal

Type
stake-sale

Investors

  • TPG (seller) — Private equity firm that invested in FirstCry in 2021 and exited in 2026.
  • Goldman Sachs Investments Mauritius (buyer) — Investment arm that bought 68 lakh FirstCry shares in the bulk deal.

Founders

  • Supam Maheshwari, Founder

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