The founder of childrens clothing brand FirstCry, Supam Maheshwar has received a notice from Indias Ministry of Finance questioning why he didnt pay more than $50 million in taxes on equity transactions conducted in privately- held FirstCry.Apart from this private equity firm ChrysCapital Management Co and Sunil Bharti Mittals family office, have also received inquiries related to the matter. At least six investors in FirstCry have also received this notice. At the moment Maheshwari is said to be in conversations with the tax department to settle the probe, according to the people.Indias tax department is probing an alleged tax evasion by the founder of three Indian unicorns FirstCry.com, Globalbees Brands Ltd., and Xpressbees, according to people who are familiar with the matter.Softbanks comment on FirstCryThe Pune-based start-up had just a few days ago completed an equity transaction worth INR 435 Cr, which saw SoftBank sell shares to Ranjan Pais MEMG Family Office, Maricos Harsh Mariwalas investment office Sharp Ventures, and the DSP family office of Hemendra Kothari. Multiple SoftBank officials have also indicated that FirstCry will be going for an IPO in 2024.The Japanese are also trying to make a major investment in bringing its shareholding in FirstCry below 25% via secondary shares to avoid being nominated as a promoter in its IPO.FirstCry has warehouses across India from where its dispatching its orders. The Indian start-up also has a presence in the UAE and sells products for babies and kids as well other products on parenting, nursery furniture, clothes & footwear toys and school products.
