We Currently Have 1,063 Stores, Will Add 350 More Stores Over Next Few Years: FirstCry | CNBC TV18

Summary

In this interview, Su Maheshwari, MD, and CEO of BrainBees Solutions, the parent company of FirstCry, discusses the company's IPO and growth outlook. With the organized baby care market growing at 20% annually, Maheshwari highlights FirstCry's multi-channel business model, strong online and offline presence, and unique community-driven app features that differentiate it from competitors. The company aims to expand its offline stores and improve profitability, capitalizing on India's digital-savvy millennial mothers.

Takeaways

• 📈 First Cry is going public with an IPO that opens for subscription today, aiming to raise up to 2,500 crores through the offer for sale of up to 54.3 million equity shares.
• 💼 Super Maheshwari, the MD and CEO of BrainBees Solutions, the parent company of First Cry, discusses the company's IPO and growth outlook in the interview.
• 👶 The overall market for childcare in India is approximately $34 billion and is expected to grow to $66 billion by 2029, with only 16% of it being organized currently.
• 📊 The organized segment of the market is growing at a rate of 20%, faster than the overall industry growth rate of 13-14%.
• 🛒 First Cry operates a multi-channel business model, with 75% of its GMV coming from online sales and 25% from its 1,063 stores across 533 cities in India.
• 🌐 First Cry has a strong online presence, but also values the offline market, planning to add 350 more stores in the next two years with the proceeds from the IPO.
• 👩‍👧‍👦 The company focuses on young mothers and fathers, building competencies over 13-14 years to cater specifically to their needs.
• 🤰 First Cry has a large parenting community within its app, providing support and resources for mothers throughout pregnancy and post-pregnancy.
• 🔍 The app offers personalized experiences, with different homepages for mothers of children of varying ages, ensuring a tailored shopping experience.
• 📊 First Cry's core business has shown an increase in adjusted EBITDA margins, rising from 5.9% in FY22 to 8.8% in FY24, indicating a path towards profitability.
• 🚀 The company aims for steady expansion and profitability, with a roadmap that includes improving margins and growing both online and offline segments.

Q & A

What is the size of the overall industry mentioned in the script?

The overall industry size is close to $34 billion as of today and is expected to become $66 billion by FY 2029.

What percentage of the industry is currently organized?

Currently, 16% of the market is organized, while 84% is unorganized.

What is the expected growth rate of the organized industry?

The organized industry is growing at a rate of 20% CAGR.

What is the total addressable market (TAM) for Brainbees Solutions by FY 2029?

The total addressable market for Brainbees Solutions is around $120 billion by FY 2029.

How does FirstCry differentiate itself from other apps and platforms?

FirstCry differentiates itself by being a specialist in child care, offering a multi-channel business model, running the largest parenting channel on YouTube, and providing a parenting community within its app with various tools and personalized experiences.

What is the mix of GMV for FirstCry between online and offline segments?

75% of FirstCry's GMV comes from online channels, while 25% comes from offline stores.

How many stores does FirstCry currently have, and how many more are planned?

FirstCry currently has 1,063 stores and plans to add 350 more stores in the next two years.

What are the advantages of FirstCry's multi-channel retail model?

The multi-channel retail model allows mothers to shop both online and offline, providing convenience, variety, and a trusted retail platform with significant presence in both areas.

What are some unique features of FirstCry's app for parents?

FirstCry's app includes features like a parenting community, evolution tracker, growth tracker, vaccination tracker, baby names, and parenting GPT, all integrated within the shopping app.

What is the current EBITDA margin for FirstCry, and what is the expected trend?

The current EBITDA margin is about 4%, with the core business segment already at 8.8%. The company expects steady expansion in EBITDA margins as the business grows.