Brainbees Solutions Limited (Firstcry) IPO: Get Date, Price, Review and Details

Introduction:

FirstCry is India’s largest multi-channel retail platform for Mothers’, Babies’, and Kids’ products, with an expanding presence internationally. Established in 2010, it aims to be a comprehensive destination for parenting needs, offering products through an online platform, company-owned and franchisee stores, and general trade distribution.

The name itself reflects the joy of a baby’s first cry, symbolizing the goal to make parenting moments joyful. We build long-term relationships with parents, beginning from pregnancy and continuing until their child is about 12 years old.

Childcare is essential and involves frequent purchases due to children’s rapid growth, making our platform a reliable partner in parents’ predictable, ongoing buying journey.

IPO Details:

Objects of Issue:

• Establishing new stores and warehouse in India

   - Establishing new modern stores under the "BabyHug" brand.

   - Establishing a warehouse in India.

• Lease Payments in India

   - Lease payments for existing modern stores operated by the company in India.

• Investment in Digital Age Subsidiary

   - Setting up new modern stores under the "FirstCry" brand and other house brands.

   - Lease payments for existing modern stores operated by Digital Age in India.

• Investment in FirstCry Trading Subsidiary

   - Establishing new modern stores overseas.

   - Establishing warehouses in the Kingdom of Saudi Arabia (KSA).

• Investment in Globalbees Brands Subsidiary

   - Acquiring an additional stake in its subsidiaries.

• Sales and Marketing Initiatives

   - Funding various sales and marketing activities.

• Technology and Data Science Costs

   - Covering cloud and server hosting costs.

• Inorganic Growth and Corporate Purposes

   - Financing acquisitions and strategic initiatives.

• General corporate purposes.

Key Risks:

• FirstCry has incurred losses in previous periods and may continue to do so.
• Supply Chain Disruptions: FirstCry's operations are dependent on a complex supply chain. Any disruptions could affect the availability of products and the company's ability to meet customer demand​.
• Site Selection and Lease Terms: The company faces risks related to identifying suitable locations for new stores and negotiating reasonable lease terms.
• Regulatory Risks: Compliance with various regulatory requirements is essential. Changes in laws or regulations could increase operational costs or limit business activities​.

Key Strengths:

• Largest Multi-Channel Platform: It is India’s largest multi-channel, multi-brand retailing platform for mothers, babies, and kids’ products, with a significant market share and growing GMV​.
• Strong Brand Recognition: The company has established a strong brand presence in India, which aids in customer acquisition and retention.
• Diverse Product Offering: It offers a wide range of products across various categories, providing customers with a comprehensive shopping experience​​.
• Content-Driven Engagement: The company leverages a content-led strategy to engage with parents early in their parenting lifecycle, which helps in building a loyal customer base​.
• Strong Digital Presence: It has a robust online platform that complements its offline stores, catering to the "research online – purchase offline" shopping behavior of many customers.

Financial Snapshot:

Conclusion:

FirstCry's leadership position in the market, strong brand recognition, and successful omni-channel strategy are significant strengths that support potential growth.

However, financial challenges, including negative cash flows and historical losses, combined with high competition from peers like Amazon, Flipkart, and other unorganized players, can pose concerns for potential investors.

Based on the above financials, growth potential we would suggest our investors to avoid to this IPO.