Investments, News

Betting high on e-tailers IDG Venture with SAIF Partners pumped $14Mn in First Cry

Unfazed by all clamours about so called bubble in Indian online retail space, investors are playing big bets over e-tailers across different categories. In yet an another testimonial for strong reason – why Investment community believes ecommerce in India is to stay and stay real? – IDG Ventures India along with SAIF Partners have invested hefty $14mn (Rs 68 crore) into e-commerce venture BrainBees Solutions, that runs baby-care centric online store First Cry. The detail of the deal is not known.

Firstcry is one of the leading online store for baby products and toys with 4000+ items over 100 top International and Indian brands, however it also has forayed into personal care essentials through newly launched portal GoodLife catering to beauty and wellness products.

Speaking exclusively to ET, ,” Manik Arora, the managing director of IDG Ventures, said “We like to invest in online retailers with the potential for profit margins of 20-40% and we believe only vertical portals that sell single categories can offer such margins,”.
Further, Arora emphasized that e-commerce is a game to be played very carefully and to win, investors have to play big and capitalise well.

Firstcry is founded by Supam Maheshwari and Amitava Saha in December 2010 and had raised $4mn in Series A funding from SAIF in April 2011. Speaking after announcement of the deal, Maheshwari said “It is a very well designed strategy for us that we want to be a niche and determined to grow the same to build customer trust”.

This is the fourth big investment in row from IDG which has been investing in single-product e-tailers. In 2011, it had invested in Delhi-based Valyoo Technologies, that runs, an online store selling prescription based eyewear along with trendy sunglasses.

With this investment, Indian ecommerce industry has bagged total $ 185 million funds in three different deals in 2012. Earlier this year Flipkart had raised $ 150 million led by Tiger Global besides Myntra’s $ 20 Million led by consortium of investors including Tiger Global & IDG.

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