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Can FirstCry Scale Up GlobalBees And Global Biz To Beat Losses?
- FirstCry, which built an empire around the kidswear proposition, is increasingly focussing outside the kids and babycare segment and going for a larger piece of the ecommerce pie, not just in India, but also in the Middle East.
- Incidentally, the only developments related to FirstCry’s India business in Q1 FY25 were for two notices from the Income Tax (IT) Department and fires at its warehouses in West Bengal and Maharashtra that resulted in loss of inventory, property and equipment.
- GlobalBees, in particular, adds a brand new dimension to FirstCry. The house of brands’ model is centred around acquiring and scaling up digital-first brands across categories.
- GlobalBees is on course to hit profitability faster than standalone house of brands, and operational efficiency is likely down to FirstCry’s central infrastructure and operational expertise.
- FirstCry is looking to grow both, ecommerce, and offline presence in the Middle East and has earmarked $13 Mn for its UAE subsidiary, which handles the Middle East operations.
- For vertical ecommerce players with FirstCry’s scale and reach, the international market is a big attraction - FirstCry is also banking on GlobalBees’ slate of D2C brands across categories to bolster its core kidswear, and baby care business.
- The GlobalBees house of brands business hitting profitability will be a major milestone for FirstCry as it vindicates the company’s investment in this model.
- However, now that it’s working under the limelight that comes with being a publicly listed company, FirstCry cannot afford to drag its losses for too many quarters.
- Even when it comes to revenue, the Globalbees brands and the international business for FirstCry have been the growth areas in the past couple of years.
- Soon after the INR 4,194 Cr IPO, GlobalBees increased its stake in consumer appliances brands Frootle and Wellspire, spending more than INR 106 Cr for the two all-cash deals.
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