FirstCry Founder Under Scrutiny: India's Tax Authority Probed $50 Million Tax Evasion

Indian tax authorities are currently investigating alleged tax evasion involving the founder of three Indian unicorn companies: FirstCry.com, Globalbees Brands Ltd., and Xpressbees. This information comes from people who are aware of the situation.

The division managed by India's Ministry of Finance has issued notifications to Supam Maheshwari, the founder, inquiring about the reasons for not fulfilling tax payments exceeding $50 million related to equity transactions carried out within the privately owned company, FirstCry. Those providing this information have requested anonymity due to its non-public nature.

At least six investors in FirstCry, which includes private equity firm ChrysCapital Management Co and Sunil Bharti Mittal's family office, said they had received inquiries on the matter, they said. The persons noted that Maheshwari is currently in discussions with the tax department to complete the investigation.

Maheshwari, representatives from ChrysCapital, the tax department, and Mittal, did not reply to emails requesting comments regarding the investigation.

After years of operating at a loss, FirstCry achieved profitability in the fiscal year that concluded on March 31, 2021. Bloomberg previously reported that the company, which is among a limited number of Indian startups that have attained operational profitability, is now exploring the IPO market.

Operating out of Pune, the company maintains warehouses throughout India for order fulfillment purposes. In addition to its extensive presence in India, FirstCry also operates in the UAE. The company specializes in offering a wide range of products for babies and children, encompassing items such as diapers, baby food, infant accessories, essential gears like strollers and high chairs, nursery furniture, clothing and footwear, as well as an array of toys and school-related products.