Tax Evasion probe involving FirstCry founder: Unfolding investigation and company growth

The Indian tax department has initiated an investigation into alleged tax evasion involving entrepreneur Supam Maheshwari, renowned for creating the online platform FirstCry, specializing in newborn, baby, parenting, and children's products. Maheshwari is also the founder of two other unicorn companies, Globalbees Brands and Xpressbees. A recent report from Bloomberg, relying on undisclosed sources, reveals that the tax department has issued notices to Maheshwari, questioning his failure to pay more than $50 million in taxes related to equity transactions within FirstCry.

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Focus on Equity Transactions

The investigation has extended to various stakeholders associated with FirstCry. Six investors, including ChrysCapital Management Co, a private equity firm, and the family office of Sunil Bharti Mittal, have reportedly received inquiries linked to this matter. The tax authorities appear to be concentrating on equity transactions conducted within FirstCry, aiming to ensure proper adherence to tax regulations.

Settlement Talks and Pending Statement

Sources indicate that Supam Maheshwari is actively engaged in discussions with the tax department in an attempt to reach a resolution regarding the ongoing probe. However, as of now, he has not issued an official statement in response to these developments. While details about the progress of these discussions remain undisclosed, Maheshwari's actions signify his willingness to address the concerns raised by the tax department.

Market Debut Goals

Despite experiencing losses over the years, FirstCry achieved profitability in the fiscal year ending March 31, 2021. With a renewed financial standing, the company is reportedly contemplating its entry into the stock markets, leveraging its operational profitability as a solid foundation for potential market debut.

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Wide Product Range 

FirstCry, headquartered in Pune, operates warehouses across India to efficiently fulfill customer orders. In addition to its significant presence within India, the company also serves customers in the United Arab Emirates (UAE). FirstCry's product offerings encompass a broad spectrum, ranging from diapers, baby food, infant accessories, gears (such as strollers and high chairs), nursery furniture, clothes, footwear, toys, and school products, catering to the diverse needs of parents and children alike.