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D2C startup FirstCry, best known for its baby products, has decided to defer its IPO in light of recent market volatility and the issues that have faced IPOs since the start of the financial year.

Speaking to the Economic Times, a source familiar with the matter has stated that FirstCry is looking to defer the publication of their draft red herring prospectus (DRHP) by a couple of months in response to market volatility.

“There are too many headwinds out there now, and based on multiple conversations with key stakeholders, they (FirstCry) are delaying filing the draft red herring prospectus (DRHP) by at least a month or two,” the source was quoted as saying.

Global and Indian markets have been extremely volatile in 2022 due to a variety of factors, including the US Fed’s decision to restrict money supply and increase interest rates, the Russia-Ukraine war, and more. Additionally, the Indian stock market, riding all-time highs following the bull run that started in 2020, has seen multiple startup IPOs struggle in the last year, including Zomato and Paytm.

In the last week alone, logistics startup Delhivery saw its public listing oversubscribed by 1.63 times, but with a tepid response from retail investors and high net work individuals (HNIs).

According to reports last month, FirstCry had been aiming for a valuation of close to $7 billion with the IPO, and an issue size of around $1 billion. It has been reported that the company is looking to take another look at these numbers as well.