Schedule of Brainbees Solutions (Firstcry)
| Issue open date | 06 Aug 2024 |
| Issue close date | 08 Aug 2024 |
| UPI mandate deadline | 08 Aug 2024 (5 PM) |
| Allotment finalization | 09 Aug 2024 |
| Refund initiation | 12 Aug 2024 |
| Share credit | 12 Aug 2024 |
| Listing date | 13 Aug 2024 |
| Mandate end date | 23 Aug 2024 |
| Lock-in end date for anchor investors (50%) | 08 Sep 2024 |
| Lock-in end date for anchor investors (remaining) | 08 Nov 2024 |
Note: The schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion. The allotment status can be checked on the registrar's website and the exchange website.
About Brainbees Solutions (Firstcry)
Founded in 2010, Brainbees Solutions Limited, popularly known as “FirstCry” is a multi-channel retailing platform offering products for mothers, babies, and Kids via its online platform ‘FirstCry’. The company’s integrated FirstCry platform helps fulfil three essential parenting needs i.e., shopping, parenting community, and education. The company offers products to parents right from the baby’s conception (i.e., nine months before birth) and can continue until the child reaches about 12 years of age including apparel with growing clothing sizes, diapers, toys, and personal care, amongst others. content-led strategy enables engagement with parents early in their parenting lifecycle through its YouTube channel, i.e. FirstCry.com parenting platform. The company sells its product through various channels: online platforms, modern stores, and general trade retail distribution channels in India. Internationally, The company has expanded in select markets, establishing a presence in UAE and KSA in 2019 and 2022 respectively aiming to replicate the India playbook.
Financials of Brainbees Solutions (Firstcry)
Issue size
| Funds Raised in the IPO | Amount |
| Overall | ₹4193.73 crores |
| Fresh Issue | ₹1666 crores |
| Offer for sale | ₹2527.73 crores |
Utilisation of proceeds
| Purpose | INR crores (%) |
| Capital expenditure | 108.1 (6.49%) |
| Lease payments | 93.1 (5.59%) |
| Investment in Subsidiary, Digital Age | 299.6 (17.98%) |
| Investment in Subsidiary, First Cry | 155.6 (9.34%) |
| Investment in Subsidiary, Globalbees Brands | 169 (10.14%) |
| Sales and marketing initiatives | 200 (12%) |
| Technology and data science costs | 57.6 (3.45%) |
| Funding inorganic growth & General corporate purposes | 583.1 (35%) |
*All figures except EPS are in ₹ Crores
Strengths
- India’s largest multi-channel, multi-brand retailing platform: The company is India’s largest multi-channel retailing platform for Mothers’, Babies’ and Kids’ products, in terms of GMV driven by its scale in multi-channel retailing in India, along with a large parenting community on its platform.
- Combination of curating growing home brands and relationships with third-party brands: The company offers customers a variety of products, ranging from products of global and domestic Mothers’, Babies’, and Kids’ brands (such as Medela India Private Limited, Chicco, Mee-Mee and Funskool (India) Limited), “mompreneurs” (i.e., mothers who operate home-based businesses) and own home brands by having a dedicated brand partnerships team that works with brands to build mutually beneficial marketing campaigns.
- Centralized inventory management: Through centralized inventory management covering both the online platform and modern stores, the company can drive auto replenishment algorithms for its modern stores which coupled with the warehouse and logistics network helps modern stores remain capital efficient (i.e., inventory-lean).
- Full-stack platform with control over manufacturing and supply chain: The company has leveraged a network of over 900 contract manufacturers across India and overseas for home brands in FY24. This enables the company to address product and pricing gaps in the market comprehensively and also exercise greater control over product quality, as well as improve the gross margins.
Risks
- Dependence on E-commerce: The company draws approximately 77% of its revenue from online sales. Future expansion relies heavily on the company’s capability to efficiently adapt to changing consumer behaviour in digital platforms. Should there be insufficient development and growth within the online commerce industry in India, or if the company fails to respond effectively to consumer behaviour changes, the operational outcomes could suffer negative consequences.
- Negative cash flows from operating activities: The company has had negative cash flows from its operating activities in the last 3 years. Negative cash flows over extended periods could affect the company’s ability to implement its growth plans.
- Past losses: The company has incurred losses in the last 3 years and may continue to do so in the future, which may adversely impact the business and the value of the Equity Shares.