RupakRoyC

An Investor in Indian Stock Market for the past 15 years,

Mail me at – rupakroyc@the-valuepicker.com

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Firstcry’s Bold Move: Increasing Investments in Globalbees

Firstcry’s Bold Move: Increasing Investments in Globalbees

BRAINBEES (FIRST CRY): The Board approved an incremental investment in Globalbees Brands Private Limited, a subsidiary, by subscribing to Compulsory Convertible Preference Shares. The approved amount is Rs. 1,46,00,94,000, slightly higher than the initially approved Rs. 1,46,00,00,000. This investment is part of a Series C2 Share Subscription Agreement and will be made in one or more tranches.

 Additional investments were approved in Firstcry Management DWC LLC, a wholly owned subsidiary, amounting to AED 32 million. This capital will be further invested in Firstcry Trading Company in Saudi Arabia (up to SAR 28 million) and Firstcry Retail DWC LLC in the UAE to support business expansion efforts.

INLFECTION POINT:

Particularly the substantial investment in its subsidiary Globalbees Brands Private Limited and the expansion funding for its Middle East operations. These moves suggest a shift from consolidation to aggressive growth and international expansion. 

Middle East Expansion:
Brainbees has made strategic investments in the Middle East (UAE and Saudi Arabia) through subsidiaries like Firstcry Management DWC LLC and Firstcry Trading Company. This region is a key growth focus for GlobalBees to scale its brand portfolio internationally.

REASON FOR THIS INVESTMENT :

Globalbees, the company’s brand aggregation and incubation arm, saw a 30% YoY increase in revenue and an 856% surge in adjusted EBITDA, turning positive at INR 22 crores. This demonstrates successful scaling and operational leverage in the newer business vertical

KEY NOTABLE POINTS :

  1. PAT and free cash flow positive in FY25
  2. Higher margin, improved retention, and gross margin expansion
  3. 856% YoY EBITDA growth, INR 22 crore positive
  4. New growth vectors and market diversification
  5.  78% of FirstCry’s GMV (GROSS MECHANDISE VOLUME )comes from online and 22% from offline stores. Importantly, 38% of GMV in top cities comes from customers who shop both online and offline, showing strong omni-channel (STORNG ONLINE AND OFFLINE SALES POINT) engagement.

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