FirstCry-owner Brainbees Solutions files DRHP; check key selling shareholders, financials & strengths

Brainbees Solutions, operating the famous Firstcry platform providing comprehensive solutions from parenting to shopping for kids, mothers, and babies, has filed its draft red herring prospectus for the public issue with SEBI.

The IPO will comprise a mix of fresh equity issuance and an OFS, or offer for sale. The company’s fresh issue will entail an equity issuance worth Rs 1,816 crore.

Further, the offer for sale will include 54.4 million shares by existing shareholders, including Mahindra and Mahindra, US private equity fund TPG, and Mauritius-based NewQuest Asia Investments III Limited, among the total 18 corporates.

Additionally, among individual shareholders, industrialist Ratan Tata, leading the diversified conglomerate Tata Group, will sell his entire 0.02 per cent stake, equating to 77,900 equity shares.

The company plans to deploy the net proceeds from the issue towards expenditures pertaining to the setting up of new modern stores, setting up a warehouse, and lease payments for its existing identified modern stores in India. Besides, it plans investment in its subsidiary, FirstCry Trading, for overseas expansion; investment in its subsidiary, Globalbees Brands, towards the acquisition of additional stakes in its indirect subsidiaries; and sales and marketing initiatives.

Besides, the company also plans to invest in technology, other strategic initiatives, and general corporate purposes.

FirstCry financials

The company, in terms of both organic and inorganic growth, has registered growth in its revenue from FY21 to FY23. For the first quarter of FY24, the company posted revenue from operations at Rs 1,406.9 crore.

Further, as per the company’s DRHP, its aggregate outstanding borrowings on a consolidated basis stood at Rs 210.57 crore as of June 30, 2023.

Key strengths

FirstCry boasts powerful network effects driven by content, brands, and data. They are India's largest multi-channel, multi-brand retail platform for mothers, babies, and kids products. 

Further, the brand enjoys unmatched brand affinity, trust, and loyalty from its customers.

FirstCry, which is a platform for curating growing home brands, has maintained relationships with prominent third-party brands.

Furthermore, the brand has complete control over manufacturing and the supply chain.