BabyOye And FirstCry.Com: Together We Stand
In what can be seen as a move to consolidate their presence in the baby products space, Mahindra Retail Pvt. Ltd., a subsidiary of Mahindra and Mahindra Ltd., sold its franchise business ‘BabyOye’ to FirstCry.com, a venture of BrainBees Solutions Ltd. This Rs 362.1 crore part equity, part cash deal comes at a time when FirstCry.com has just raised an additional $34 million from the Mahindra Group, a private equity fund Adveq, Infosys Ltd. co-founder Kris Gopalakrishnan and all other existing shareholders.
The BabyOye-FirstCry.com transaction will be completed with an equity issuance of Rs 354.6 crore and cash consideration of Rs 7.5 crore, the company said in a press release.
Mahindra Retail had acquired the online operations of ‘BabyOye,’ including the brand in 2015. It also re-branded its existing ‘Mom and Me’ stores as ‘BabyOye.’ The brand had fixed assets worth Rs 1.7 crore, while its mobile app, as an intangible asset was valued at Rs 91.4 lakh, as on March 31, 2016.
Consolidation is the way to thrive and establish industry leadership, Mahindra Group Chairman and Managing Director Anand Mahindra said in the press release.
I am optimistic that this consolidation of the strengths that both groups bring to the partnership will result in a winning proposition. We are hugely excited by the possibilities.Anand Mahindra, Chairman and Managing Director, Mahindra Group
Shares of Mahindra and Mahindra Ltd. were trading lower by 0.8 percent at Rs 1,345 as of 9:40 a.m.