Firstcry's parent, Brainbees Solutions, saw its shares fall nearly 70% since listing in August 2024. The company stuck to building more stores and private labels while quick commerce apps changed how parents buy routine essentials like diapers. Meanwhile, rivals like Nykaa and Mamaearth adapted by expanding beyond their core categories.
How We Got Here
Firstcry listed Brainbees Solutions in August 2024, aiming to leverage its scale in baby products. Since then, its market capitalization halved to roughly Rs 11,300 crore ($1.2 billion), even as midcap and smallcap indices remained flat.
The Numbers
- Market capitalization for Brainbees Solutions has halved to roughly Rs 11,300 crore ($1.2 billion).
- Firstcry clocked revenues of over Rs 8,500 crore in FY26 but continues to report losses.
- Diapers, an essential category, represents 15% of Firstcry’s GMV, a segment increasingly served by quick commerce.
- More than 50% of Firstcry’s business comes from fashion, which remains less impacted by quick-delivery apps.
- Firstcry’s private labels, including Babyhug and Pinekids, have significantly increased their share in its domestic multi-channel business.
What Happens Next
🇮🇳 Why This Matters for India
For founders and investors building D2C baby brands in Bangalore or Pune, Firstcry's struggle shows how quickly quick commerce can shift consumer expectations for essentials.
The Take
The underlying issue is a fundamental shift in parental shopping psychology: convenience for routine items now trumps the one-stop-shop model. Expect new D2C entrants focusing on niche, curated baby fashion or specialty products to gain traction where Firstcry’s broad approach is struggling.
Source:
The Ken ↗