Mumbai, Oct. 15: A year after acquiring online maternity and childcare brand Babyoye, Mahindra & Mahindra (M&M) today said it would sell its franchise to competitor FirstCry for Rs 362.1 crore on a slump-sale basis as part of a business consolidation pact.

"A transfer agreement has been executed between Mahindra Retail Pvt Ltd (MRPL), a subsidiary of the company, Brainbees Solutions (FirstCry) and founder of FirstCry to transfer the franchise division of MRPL (Babyoye) on a slump-sale basis to FirstCry," M&M said in a BSE filing.

The franchise generated a turnover of Rs 16.43 crore, accounting for 8.19 per cent of Mahindra Retail's revenue.

Elaborating on the deal, M&M said: "In terms of the structure of the transaction, Mahindra Retail and FirstCry have consolidated their operations, with Mahindra Retail selling its franchise business to FirstCry, and operating all company stores under a FirstCry master franchise agreement."

The merged entity will conduct its business under the brand name FirstCry.com - A FirstCry Mahindra Venture.

FirstCry.com will have a parent base of over 4 million and more than 300 stores across 125 cities.

FirstCry has also raised $34 million of new equity capital from the Mahindra group, equity fund Adveq, Infosys co-founder Kris Gopalakrishnan and other existing shareholders.

FirstCry was founded by Supam Maheshwari, who will continue as the CEO of the combined entity.