Brainbees Solutions Ltd. (Firstcry) IPO: A Closer Look

Investing in the upcoming Brainbees Solutions (Firstcry) IPO has become incredibly convenient with HDFC Securities' through its InvestRight App.??

With a strong brand presence, a vast market, and robust financial performance, Brainbees is poised for substantial growth. Let's dive into the details.

10 Reasons to Invest in the Upcoming Brainbees IPO?

1. Market Leadership: Brainbees Solutions (Firstcry) holds a leading position in the baby and kids' products segment, making it a dominant player in this niche market.?
2. Innovative Business Model: The company's hybrid business model combines online and offline channels, maximizing customer reach and convenience.?
3. Strong E-commerce Presence: With a well-established online platform, Brainbees leverages technology to offer a seamless shopping experience and personalized recommendations.?
4. Expanding Retail Network: The company continues to expand its physical retail presence, thereby increasing brand visibility and customer accessibility across India.?
5. Proven Track Record: Brainbees has a history of consistent performance, with a steady increase in market share and revenue over the years.?
6. Strategic Partnerships: The company has forged strong partnerships with leading global and domestic brands, enhancing its product portfolio and customer appeal.?
7. Growing Consumer Base: As more young parents enter the market, the demand for baby and kids' products is expected to rise, benefiting Brainbees' growth trajectory.?
8. Sustainability Initiatives: Brainbees is increasingly focusing on eco-friendly products and sustainable business practices, resonating with the environmentally-conscious consumer.?
9. Robust Supply Chain: The company has built a resilient and efficient supply chain, ensuring timely product availability and cost efficiency.?
10. Scalability Potential: With plans to further penetrate tier-2 and tier-3 cities, Brainbees is well-positioned to tap into untapped markets, driving long-term growth.?

About Brainbees Solutions?Ltd.

Founded in 2010, Brainbees Solutions Limited offers products for mothers, babies, and kids via the online platform FirstCry. Brainbees Solutions (Firstcry)'s mission is to create a one-stop shop for parents' retail, content, community engagement, and education needs. The company offers everything needed for an infant up to the age of 12, including apparel, footwear, toys, nursery, diapers, and personal care, among others. The company offers products from Indian third-party brands, global brands, and its own brands. The company has an extensive offering for mothers, babies, and kids with more than 1.5 million SKUs from more than 7,500 brands on its multi-channel platform across categories including apparel and fashion, toys, books, school supplies, diapers, bath and skincare, nutrition and breastfeeding, health and safety, baby gear, and maternity wear (as of December 31, 2023).?

Brainbees Solutions (Firstcry)'s strong brand awareness and customer trust are reflected in the launch of Babyhug, one of Brainbees Solutions (Firstcry)'s house brands. According to a RedSeer report, this is the largest multi-category brand for mother, baby, and kids’ products in India, regarding GMV, for the year ending December 2023. Its other key house brands include Pine Kids, Cute Walk by Babyhug, and Babyoye.?

According to a report by RedSeer Report, Brainbees Solutions (Firstcry) is the largest specialized online retail platform for maternal, baby, and kids products in India, in terms of GMV for the year ending December 2023.?

For the nine months ended December 31, 2022, and the financial years 2023, 2022, and 2021, the Company had a network of more than 900 contract manufacturers in India and other countries for its house brands, excluding contract manufacturers engaged by Globalbees Brands and its subsidiaries.?

As of December 31, 2023, the company employed 3,411 full-time employees and 2,475 employees on a contract basis.

Key Details of the IPO?

• IPO Date: August 6, 2024 to August 8, 2024?

• Face Value: ?2 per share?

• Price Band: ?440 to ?465 per share?

• Lot Size: 32 Shares?

• Total Issue Size: 90,187,690 shares (aggregating up to ?4,193.73 crore)?

• Fresh Issue: 35,827,957 shares (aggregating up to ?1,666.00 crore)?

• Offer for Sale: 54,359,733 shares of ?2 (aggregating up to ?2,527.73 crore)?

• Employee Discount: ?44 per share?

Financials of Brainbees?

• Revenue from Operations: ?6,575.08 crore?

• Total Assets: ?7,510.38 crore?

• Net Worth: ?3,170.74 crore?

Objectives of the IPO?

The proceeds from the IPO will be used to:?

• Expenses of the Company for: (I) establishment of new modern stores under the "BabyHug" brand; and (II) establishment of a warehouse in India;?

• Expenditure on lease payments for existing identified modern stores owned and operated by the Company in India;?

• Investments in its Subsidiary Digital Age for (I) setting up new modern stores under the FirstCry brand and other house brands of the Company; and (II) lease payments for the existing identified modern stores owned and controlled by Digital Age in India;?

• Investment in Subsidiary FirstCry Trading for overseas expansion by: (I) establishment of new modern stores; and (II) establishment of warehouses in KSA;?

• Investment in Subsidiary Globalbees Brands for the acquisition of an additional stake in its Subsidiaries;?

• Sales and marketing initiatives;?

• Technology and data science costs, including cloud and server hosting costs; and?

• Financing of inorganic growth through acquisitions and other strategic initiatives and general corporate purposes.?

Conclusion?

Brainbees Solutions (Firstcry) IPO presents a compelling investment opportunity. With a strong financial foundation, promising growth prospects, and a well-established market position, Brainbees is poised to capitalize on the thriving Indian baby and kids’ products market. Don't miss out on this chance to be part of Brainbees' growth story.?