WomenCart Limited IPO

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1. Incorporation and Evolution: The company initially started as “Womancart Private Limited” in 2018 and later converted into a public limited company, changing its name to “Womancart Limited” in 2023.

2. Product Portfolio: The core of their business is offering a variety of beauty and wellness products for both men and women. These include skincare, body care, hair care, fragrances, makeup products, imitation jewelry, lingerie, and grooming products. They aim to provide consumers with a comprehensive selection of classic and emerging brands.

3. Omnichannel Approach: They operate both in the digital space, through their website “womancart.in,” and physical stores. This allows customers to shop online from the comfort of their homes or visit physical locations for an in-person shopping experience.

4. Specialized Product Categories: They offer specially sourced products for various needs, including skincare, makeup, fragrances, hair styling products, and grooming products for men.

5. Customer-Centric Approach: Their focus is on providing an easy shopping experience and excellent customer service. They also prioritize offering high-quality products and fashionable essentials.

6. Product Range: They offer a wide product portfolio consisting of approximately 10,000 SKUs. This includes products from their own brand as well as products from national and international brands.

7. Online Marketplace Presence: In addition to their website, the company’s subsidiaries are registered as sellers on various online marketplaces such as Amazon, Flipkart, Meesho, and Dhani. This allows them to reach a broader customer base and leverage the reach of these popular e-commerce platforms.

8. Supply Chain and Inventory Management: The company procures products through manufacturers or authorized dealers and sells them to its subsidiaries. When an order is received from a marketplace, the relevant subsidiary fulfills the order, with inventory levels at the subsidiary level based on the popularity of specific products.

9. Consolidated Sales Data: By operating through multiple subsidiaries and marketplaces, the company aims to present more meaningful and presentable consolidated sales data.

“Womancart Limited” operates as a digital retail platform with a strong focus on beauty, wellness, and lifestyle products. They cater to a diverse range of customer needs and preferences, providing both online and offline shopping options, and leverage various subsidiaries and online marketplaces to expand their reach and optimize their sales strategy.

Objects of the WomenCart Limited IPO:

The Company proposes to utilize the funds that are being raised towards funding the following objects and achieve the benefits of listing on the Emerge Platform of NSE. The objects of the issue are: - 1. To meet the expenses of Branding and Marketing. 2. To meet the expenses of App Development. 3. To meet the Working Capital requirements. 4. To meet the General Corporate Purposes. 5. To meet the Issue Expenses.
DRHP of WomenCart Limited IPO
RHP of WomenCart Limited IPO

WomenCart Limited IPO Details:

Open Date: Oct 16 2023
Close Date: Oct 18 2023
Total Shares: 1,112,000
Face Value: ₹ 10 Per Equity Share
Issue Size: 9.5 Cr.
Lot Size: 1600 Shares
Issue Price: ₹ 86 Per Equity Share
Listing At: NSE Emerge
Listing Date: Oct 27 2023

Promoters And Management:

i. Mr. Madhu Sudan Pahwa, aged 53 years is a Managing Director & CFO of the Company. He is a Chartered Accountant by profession. He has also done Bachelor of Commerce (Honours) from Delhi University. He was holding Certificate of Practice since March 1995 till June 2023. He has an experience in the profession for 28 years. His extensive experience and flexible approach have allowed him to help several businesses save costs in the areas of logistics, purchasing, inventory management, and obtaining adequate planning while paying the government an appropriate amount of taxes, which are essential for the expansion of any firm. Utilising his experience, he explored the e-commerce industry in an effort to understand more about the internet marketing platform, which he views as the origin of the modern corporate world. His perspective, viewpoint, and strategy help him achieve his objectives while overcoming any operational difficulties. ii. Mrs. Veena Pahwa, aged 50 years is the Promoter and Whole Time Director of the Company. She is a graduate in the Bachelor of Arts from Delhi University and joined Vignette Advertising and Marketing Private Limited as Client Account Coordinator- Electronic Media, immediately after graduation. She always aimed to provide customers with a straightforward, approachable, yet upscale buying experience, and this ambition inspired her to create the concept of retail outlets that provide customers with a one-of-a-kind shopping experience. After marriage she had to leave her job and was looking after family. In 2015, she started a retail store in the name of The Family Store and has more than 8 years of experience in the retail, e-commerce and fashion business. iii. Ms. Prerna Pahwa, aged 24 years is a Non-Executive Director of the Company. She is a Chartered Accountant by profession. She has done Bachelor of Commerce (Honours) from Delhi University. She is passionate and enthusiastic for fashion industry. She studied affiliate marketing, social media advertising, and online advertising. As she guides the IT team by giving the team knowledgeable feedback on technicalities and digital marketing. She also guides the creations and designing of Jewellery and apparels. She has an experience of around one year in the same field.

Financials of WomenCart Limited IPO:

Particulars ( In Lakhs )
2023
8M-FY24
Revenue from Operations 964 847
Other Income 1 2
Total Revenue 965 850
Cost of Materials Consumed 715 433
Employee benefits expenses 44 43
Other Expenses 121 220
EBITDA 129 153
Depreciation & Amortisation 10 8
Finance Cost 7 7
EBIT 119 145
OPM (%) 13.37% 17.96%
PBT 68 138
Tax 17 35
PAT 51 103
NPM (%) 5.24% 12.15%
No.of Shares 42.08 42.08
EPS 1.20 2.45

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Womancart Limited 10 0.5 1.20 71.5 86 36
FSN E-Commerce Ventures Ltd (Nykaa) 5,144 21 0.07 2,364 148 42,252
* All the data is as per FY23.

Recommendation on WomenCart Limited IPO:

Review and Recommendation of Womencart SME IPO by IZ team is 3/10 1. Business Overview: Womenkart is primarily a digital consumer-centric retail platform that offers a wide range of beauty, wellness, and lifestyle products. They operate both online and have physical stores. 2. Product Portfolio: The company boasts an extensive product portfolio, including approximately 10,000 SKUs from their own brand and various national & international brands. 3. Online and Offline Presence: Womenkart sells its products online through its website and has physical stores in Delhi. It's noteworthy that the website currently has relatively low organic traffic. 4. Company History: Womenkart started as an offline grocery store and transitioned into selling beauty and wellness products online. They also launched their own brands in FY 2022-23. 4. Subsidiaries: The company has acquired several subsidiaries in FY 2022-23, which are engaged in online businesses. These subsidiaries contribute to the overall operations. 5. Sales and Revenue: The standalone revenue figures for the company have shown substantial growth from FY21 to 5MFY24. Offline sales dominate, and owned brands make up 12% of the sales. 6. Competitive Landscape: Womenkart operates in a highly fragmented industry, competing with organized multi-brand retailers, unorganized merchants, and prominent online platforms. 7. Profitability and Cash Generation: The business seems to have healthy gross margins (around 50%) but faces high costs, particularly in Administrative, Selling & Distribution. Cash generation has been a challenge, given the high level of inventory and trade receivables. 8. Market Cap and Fundraising: The market cap is 36 crores, and the company is raising 9.5 crores for branding, marketing, app development, and working capital. However, it's important to note that the company is at an early stage and faces significant competition. 9. Risks and Challenges: The key risks include intense competition, the need for substantial capital for brand building, and the cash flow challenges due to inventory and receivables.

Lead Manager of WomenCart Limited IPO:

  1. Narnolia Financial Services Ltd

Registrar of WomenCart Limited IPO:

  1. Maashitla Securities Pvt. Limited.

Company Address:

WomenCart Limited House No. 57, 3rd Floor, Block F-14 Model Town, New Delhi- 110009 Phone: +919205577453 Email: secretarial@womencart.com Website: https://www.womancart.in/

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