Brainbees Solutions Limited IPO

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Brainbees Solutions Limited are India’s largest multi-channel retailing platform for Mothers’, Babies’, and Kids’ products, as measured by Gross Merchandise Value (GMV) for the Financial Year 2024, according to the RedSeer Report. Their presence is expanding into select international markets, enhancing their global footprint. In India, their diverse retail strategy encompasses online platforms, company-owned modern stores, franchisee-owned modern stores, and general trade retail distribution.

Market Dynamics

Childcare represents a non-discretionary, essential expense with a perpetual demand, as noted in the RedSeer Report. They operate in a retail category characterized by high purchase frequency. Children’s rapid growth necessitates frequent purchases of clothing and consumables like diapers and other baby products. This creates a predictable and frequent transactional journey with their customers, extending over a span of about twelve years.

International Expansion

In their international endeavors, they have established a strong presence in the UAE and KSA. Since 2019 and 2022 respectively, they have been replicating their successful India playbook in these markets. According to the RedSeer Report, they are the largest specialist online retail platform for Mothers’, Babies’, and Kids’ products in the UAE by GMV for the Financial Year 2024. In KSA, they have achieved the status of the largest online-first retail platform focused on Mothers’, Babies’, and Kids’ products.

Product Offering

Their platform offers a wide range of products from third-party Indian brands, global brands, and their proprietary home brands. Leveraging their deep customer insights, robust data analytics, in-house design, and development capabilities, they have built trusted home brands in the Mothers’, Babies’, and Kids’ product categories. One of their home brands, BabyHug, has become the largest multi-category brand in India in terms of GMV for the Financial Year 2024, according to the RedSeer Report.

Conclusion

As they continue to grow and expand, both in India and internationally, their commitment to providing a comprehensive, joyful parenting experience remains at the core of their operations. By leveraging their strengths in technology, data analytics, and customer insights, they aim to sustain their position as a leader in the Mothers’, Babies’, and Kids’ product retail market while exploring new avenues for growth and innovation.

Objects of the Brainbees Solutions Limited IPO:

The Company proposes to utilize the net proceeds to finance the following purposes: i. Expenses of the Company for: (I) establishment of new modern stores under the "BabyHug" brand; and (II) establishment of a warehouse in India; ii. Expenditure on lease payments for existing identified modern stores owned and operated by the Company in India; iii. 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; iv. Investment in Subsidiary FirstCry Trading for overseas expansion by: (I) establishment of new modern stores; and (II) establishment of warehouses in KSA; v. Investment in Subsidiary Globalbees Brands for the acquisition of an additional stake in its Subsidiaries; vi. Sales and marketing initiatives; vii. Technology and data science costs, including cloud and server hosting costs; and viii. Financing of inorganic growth through acquisitions and other strategic initiatives and general corporate purposes. Total number of share issues :- i. Fresh issue is 35,827,957 shares, ii. Offer for sale is 54,359,733 shares.
DRHP of Brainbees Solutions Limited IPO
RHP of Brainbees Solutions Limited IPO

Brainbees Solutions Limited IPO Details:

Open Date: Aug 06 2024
Close Date: Aug 08 2024
Total Shares: 90,187,690
Face Value: ₹ 2 Per Equity Share
Issue Size: 4,193.73 Cr.
Lot Size: 32 Shares
Issue Price: ₹ 440 - 465 Per Equity Share
Listing At: NSE,BSE
Listing Date: Aug 13 2024

Promoters And Management:

Supam Maheshwari is the Managing Director and Chief Executive Officer and has been on the Board since incorporation. He is currently heading the Company and is responsible for the overall management of the Company. He holds a bachelor’s degree in engineering (mechanical) from Delhi College of Engineering, University of Delhi, Delhi, India and a post graduate diploma in management from the Indian Institute of Management, Ahmedabad, Gujarat, India. He was previously associated with Brainvisa Technologies Private Limited as a president. He has approximately 14 years of experience in e-commerce industry. Sanket Hattimattur is one of the Executive Directors and is the Chief of Staff. He joined the Company on September 9, 2010. He is responsible for key initiatives in India business, strategy, M&A and overseeing international business expansion in the Company. He holds a bachelor’s degree in commerce (financial accounting and auditing) from University of Mumbai, Maharashtra, India. Prior to joining the Company, he has worked with Brainvisa Technologies Private Limited, Deutsche Bank Group - Global Markets Centre Private Limited and Tata AIG Life Insurance Company Limited. He has approximately 14 years of experience in e-commerce industry. Paul Davison is a Non – Executive Director of the Company as a nominee of SVF Frog (Cayman) Ltd and has been on the Board since July 15, 2019. He holds a bachelors’ degree in arts from University of Cambridge, Cambridge, England. He was previously associated with SB Investment Advisors (UK) Limited. He is currently associated with SB Investment Advisors (US) Inc. He has approximately seven years of experience specifically in technology investing.

Financials of Brainbees Solutions Limited IPO:

Particulars ( In Crores )
2022
2023
2024
Revenue from Operations 2,401 5,633 6,481
Other Income 116 99 94
Total Revenue 2,517 5,731 6,575
Cost of materials consumed 223 480 557
Purchases of stock-in-trade 1,754 3,117 3,890
Changes in inventories -405 339 -284
Employees Benefit Expenses 339 770 686
Other Expenses 509 1,245 1,561
EBITDA 97 -219 165
OPM (%) 3.87% -3.81% 2.51%
Depreciation & Amortisation 111 294 371
EBIT -14 -513 -206
Finance Cost 38 72 115
PBT -51 -530 -322
Tax -28 44 0
PAT -79 -486 -322
NPM (%) -3.13% -8.48% -4.89%
No.of Shares 51.91 51.91 51.91
EPS -1.51 -9.36 -6.19

Comparison With Peers:

Note :- There are no listed companies that engage in a business similar to this Company.

Recommendation on Brainbees Solutions Limited IPO:

Review and Recommendation of First Cry IPO by IZ team is 5/10

Lead Manager of Brainbees Solutions Limited IPO:

  1. Avendus Capital Pvt Ltd
  2. BofA Securities India Limited
  3. JM Financial Consultants Private Limited
  4. Kotak Mahindra Capital Company Limited
  5. Morgan Stanley India Company Private Limited

Registrar of Brainbees Solutions Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Brainbees Solutions Limited Rajashree Business Park, Survey No. 338, Next to Sohrabh Hall, Tadiwala Road, Pune - 411 001 Phone: +91 84829 89157 Email: companysecretary@firstcry.com Website: https://www.firstcry.com/

Discussion on Brainbees Solutions Limited IPO:

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