Brainbees Solutions IPO

Incorporated in 2010, Brainbees Solutions Limited operates its business under the brand name “FirstCry”. For the year ended December 2022, the company became one of India’s largest multi-channel retailing platforms for Mothers’, Babies’, and Kids’ products in terms of GMV.

The company has expanded internationally in selected markets, establishing a presence in UAE and KSA in 2019 and 2022, respectively. As of June 30, 2023, the company recorded a network of 936 FirstCry and BabyHug modern stores in 465 cities in 27 states and 4 union territories across India with over 1.76 million square feet of retail space as of June 30, 2023.

Between CY2016 and CY2019, the e-commerce market in India has grown at a CAGR of ~27%. It is expected to grow at a CAGR of ~25% to reach ~₹13,500 billion by CY 2027, with e-commerce penetration at ~12% in CY 2027. Rising internet penetration, higher disposable income, and rising urbanisation are likely to aid the growth of the e-commerce market.

Brainbees Solutions IPO Strengths

• The company operates a full-stack platform with control over manufacturing and supply chain. As of June 30, 2023, it leveraged a network of over 800 contract manufacturers across India and overseas for its home brands, excluding contract manufacturers engaged by Globalbees Brands and its subsidiaries.
• Looking forward, the company is focused on growing its customer base by continuing to invest in brand, technology, products and its membership program.

Brainbees Solutions IPO Risks

• The company has incurred losses in past periods and may continue to do so in the future, which may adversely impact its business and the value of the equity shares.
• Any failure to acquire new customers or fail to do so in a cost-effective manner could impact its revenue growth and may act as a barrier to achieving profitability.