Mothercare to change hands in India from DLF Brands to FirstCry

FirstCry is looking to buy the India franchisee rights for UK’s kids brand Mothercare from DLF Brands in a bid to reinforce its presence in the growing kids’ market. It will also raise equity funding of about 100 million dollars (Rs 665.27 crore), valuing FirstCry’s owner Brainbees Solutions at 400-500 million dollars. Mothercare is the latest brand after Mango, Forever 21and Sephora among other global labels to change hands from DLF Brands.

As per sources if the deal is finalised, DLF Brands will get a stake in FirstCry as a part of the arrangement. DLF Brands and FirstCry denied any such deal, Mothercare declined to comment.

DLF Brands had bought the franchise rights of Mothercare for 15 years, a UK-based retailer that sells products for expectant mothers and children and currently operates dozens of outlets, and through department store chain Shoppers Stop. FirstCry.com, which started as an online player, later acquired offline retailer Mahindra’s BabyOye in 2016 for Rs 362.1 crore in a primarily stock deal, signalling its focus on building an offline presence.

In the financial year that it acquired Mahindra Retail, BrainBees Solutions, owner of FirstCry, saw losses soar to Rs 393 crore in FY 2017, from Rs 277 crore in FY 2016. The total revenue was Rs 239 crore for the period, a jump from Rs 173 crore the year before.