Brainbees Solutions Ltd Management Discussions

Indian Economic Overview

Indias economic performance in FY 2024-25 has been marked by a steady growth trajectory, with the Gross Domestic Product (GDP) estimated to expand by 6.4%, maintaining its position as one of the fastest-growing major economies. This growth is underpinned by robust government infrastructure investment, a strategic emphasis on boosting private consumption, and the continued expansion of the services sector, particularly finance and real estate.

Retail inflation in India, as measured by the Consumer Price Index, fell to 4.6% in FY 2024-25, marking the lowest level since FY 2018-19. This reflects the success of the Reserve Bank of Indias pro-growth monetary policy in balancing economic expansion with price stability. While the overall macroeconomic environment in India has remained positive, the retail sector has experienced a phase of moderated demand. The consumer and retail landscape in FY 2024-25 was marked by a complex mix of challenges including erratic weather conditions, fluctuating input costs, and a general softness in consumer sentiment. Against this backdrop, consumers, increasingly cautious about job security and income growth, prioritised essential purchases, resulting in tempered demand across discretionary categories such as apparel, electronics, and lifestyle products. Retailers proactively responded by introducing attractive discounts and innovative promotions, which helped sustain sales volumes and maintain high levels of consumer engagement.

Looking ahead, the Indian economy is projected to grow between 6.3% and 6.8% in FY 2025-26, driven by structural reforms and digital transformation among others. Initiatives such as Make in India and the Production-Linked Incentive (PLI) schemes are fostering a robust manufacturing ecosystem, attracting significant investments in key sectors.

Industry Review

Indian Retail and E-Commerce Market

The Indian retail sector is a key driver of economic growth, emerging as the worlds fourth-largest retail destination. The market stood at 75-77 trillion (approximately USD 938 963 billion) in FY 2023-24 and is expected to reach 115-125 trillion (approximately USD 1.4-1.6 trillion) by FY 2028-29.

This growth is fuelled by rising incomes, increased consumption, and the expansion of both emerging and mature income households. Additionally, growing demand from Tier 2 & 3 cities and towns, supported by a strong logistics network, has further accelerated the sectors expansion, making India one of the fastest-growing retail markets globally. Government reforms and advancements in digital payment infrastructure like UPI have played a crucial role in formalising the sector and boosting retail sales. Moreover, evolving consumer behaviour driven by social media influence and global trends is reshaping marketing strategies, making digital engagement and data-driven insights critical for businesses. Innovation and evolving consumer preferences continue to shape the sector, influencing growth and competitiveness in this dynamic market.

India is one of the fastest-growing e-commerce markets in the Asia-Pacific region, poised for robust expansion despite infrastructural challenges in rural areas. In FY 2023-24, the e-commerce market size in India reached between 4,880-5,040 billion

(approximately USD 61-63 billion). The sector is expected to maintain strong momentum, with an estimated CAGR of ~20% propelling the market to ~ 12,480-12,640 billion (approximately USD 156-158 billion) by FY 2028-29. This surge is being driven by rising internet penetration, increasing disposable income, urbanisation, and greater awareness and adoption of online services.

Additionally, the expansion of e-commerce into Tier 2 and beyond cities, along with the rise of new models such as Direct-to-Consumer (D2C), is fuelling market expansion. The Covid-19 pandemic further accelerated e-commerce adoption in India, leading to a surge in new users and an increase in order frequency among existing online shoppers.

Source: https://www.india-briefing.com/news/navigating-business-prospects-in-indias-retail-industry-key-growth-drivers-29245.html/

Macroeconomic Factors

Indias Rising Incomes are Fuelling Future Consumption

Indias large population of approximately 1.4 billion, coupled with rising household incomes, is a major driver of growth in private final consumption expenditure (PFCE). In CY 2023, Indias consumption stood at 60% of GDP, lower than developed economies like the United States, where it was around 69% in CY 2022. This highlights considerable room for growth. Emerging ( 2.25- 5.85 Lakhs of annual income) and Mature (> 5.85 Lakhs of annual income) households made up about 69% of all Indian households in FY 2023-24, a figure expected to rise to 74% by FY 2028-29. These segments are set to be the primary engines of future consumption.

India is among the Youngest Nations in the World

India is one of the youngest countries globally, with a median age of around 28 years as of CY 2023, fostering a tech-savvy population that readily embraces new trends. Children falling under the age group 0-12 years make up approximately 306 million, or 21% of Indias population, making India the worlds largest child demographic in CY 2023. Millennials (born 1981-1996) and Gen Z (born 1997-2012) are at the forefront of digital adoption and are key drivers of the countrys consumption growth.

India has one of the Largest Urban Populations Globally

With approximately 520 million people living in urban areas in FY 2023-24, India has one of the worlds largest urban populations, though its urbanisation rate remains relatively low at 36% compared to 59 85% in developed and maturing economies in FY 2023-24. This is expected to rise to 39% by FY 2028-29, reaching around 582 million people. Urbanisation is set to drive infrastructure development, job creation and modern consumer services, while also boosting disposable incomes and discretionary spending. Additionally, urban areas are key to digitally driven consumption, supported by widespread internet access and digital payment adoption.

Indian Child Care Market

India is home to one of the highest birth rates worldwide, with 16.3 births per thousand people in CY 2022, nearly 1.5 times the rate of developed economies. According to RedSeer report, ~21% of Indias population fell between the 0-12 age group in CY 2023. Though the Covid-19 pandemic caused a slight dip in birth rates, the decline was less significant than in many other nations.

Childcare product spending in India remains at a nascent stage compared to global benchmarks. In FY 2023-24, the annual spend per child on childcare products in India stood between 9,280-9,350, significantly lower than countries like the United ( 210,000-220,000), the United Kingdom ( 170,000-180,000), the UAE ( 160,000-170,000), and even emerging markets such as KSA ( 61,000-71,000) and China ( 45,000-55,000). Owing to this gap, rising per capita income, and the increase in tech-savvy, brand-conscious consumers, spending is expected to rise and is projected to reach 17,800-18,200 by FY 2028-29 at a CAGR of 13-15% between FY 2023-24 and FY 2028-29. This growth is being driven by rising awareness around child health and wellness and increasing disposable incomes.

The Indian childcare products market has witnessed strong growth, driven by increasing disposable income and a growing preference for branded products. Before Covid-19, the market expanded at a CAGR of 10%, reaching 1,980-2,080 billion (approximately USD 25-26 billion) in FY 2019-20.

While the pandemic led to a temporary slowdown, the market rebounded strongly, growing at a CAGR of approximately 19% between FY 2021-22 and FY 2023-24 to reach 2,800-2,900 billion (approximately USD 35-36 billion). The market will continue to expand at a CAGR of 12-14%, reaching 5,150-5,450 billion (approximately USD 64-68 billion) by FY 2028-29. This growth is fuelled by evolving consumer preferences, with parents increasingly prioritising branded childcare products, especially in apparel and consumables due to rising concerns about child health and safety.

Approximately 41% of the markets spending is driven by parents with children aged 0-4 years in FY 2023-24 which is expected to rise to ~42% by FY 2028-29, reflecting the critical role this age group plays in shaping product demand. While ~84% of the market remains unorganised in FY 2023-24, the organised sector, comprising both vertical specialists and horizontal platforms is steadily gaining ground. Childcare is a perpetual market with non-discretionary nature of spending.

In India, the organised online childcare market is split between vertical and horizontal players. The vertical players have single childcare product category (e.g., apparel) focussed value propositions, whereas horizontals operate across childcare product categories. In the mid-to-premium and premium segments, exclusive brand outlets (EBOs) focussing on childrens products have started to capture more attention. Yet, there remains a vast untapped opportunity as majority of the market is still unorganised. Within the organised offline market, there is a clear shift towards specialty mothers, babies, and kids retailers, which serve as a one-stop destination for all child-related things. Historically, apart from health and food categories, brand penetration in the childcare market has been limited. This scarcity of childcare-focussed brands has resulted in limited assortment, less personalised product offerings, lack of democratised access to childcare-related information, and often poor product quality. Among branded products, only a handful of large, multi-category names have gained a foothold, suggesting that theres substantial potential for market expansion and consolidation in the coming years.

Apparel, comprising clothing & footwear, remains the largest segment in Indias childcare products market due to its essential and non-discretionary nature. However, non-apparel categories such as consumables, hard goods, and toys are growing at a faster pace, driven by increasing adoption and premiumisation. Within consumables, which include diapering, baby food, and skincare, diapering is the fastest-growing sub-category. This growth is fuelled by rising health awareness and a growing number of working mothers. Meanwhile, the demand for hard goods and toys is being propelled by dual-income nuclear families and greater exposure through social media.

Role of Multi-Channel Retailing in the Indian Childcare Products Market

Multi-channel retail is reshaping the childcare landscape by combining the convenience of online shopping with the accessibility of physical stores. Parents continue to value the in-store experience for the touch and feel of products, which often supports their online purchase decisions. Categories such as apparel (clothing & footwear), toys, diapers, and baby skincare are all seeing strong traction online, driven by convenience, variety, and doorstep delivery.

Retailers are increasingly integrating the efficiency of digital platforms with the personalised appeal of physical stores to create a more intelligent and seamless shopping experience. While physical stores enable customers to build lasting impressions through tactile engagement, online channels offer the advantages of convenience and instant access.

Whether a customer discovers a product online and chooses to purchase it in-store, or encounters an item in-person and later completes the transaction digitally, the overall experience is designed to be smooth and user-friendly. This reflects the evolving expectations of the modern consumer.

Although there is no definitive guide to parenting, contemporary retailers are demonstrating a growing sensitivity to the needs of families by closely observing and responding to parental behaviours and preferences. This insight is driving the development of shopping experiences that are both personalised and intuitive. Concurrently, digital communities are emerging as trusted spaces, offering not only practical advice but also emotional reassurance and a sense of shared experience. This convergence of technology-driven convenience and community-driven support is reshaping the way parents interact with the childcare market. They engage not merely as consumers, but as individuals seeking understanding, connection, and meaningful engagement.

Growth Drivers of the India Childcare Products Market

The India Childcare Products Market is experiencing strong growth, driven by several key factors:

Rising Adoption of Childcare Products and Increasing Disposable Incomes Growing awareness among parents regarding baby health, hygiene, and wellness, combined with rising disposable incomes, has significantly increased theadoption of childcare products across the country.

Shorter Replacement Cycles

The evolving needs of babies and young children (aged 0–12 years) are leading to shorter product replacement cycles and higher purchase frequencies, thereby contributing to market expansion.

Nuclearisation of Families

The growing shift to smaller households and dual-income (both parents working) setups, especially in urban areas, is driving demand for convenient and high-quality childcare products.

Deeper Penetration in Tier 2 and beyond

Companies are increasingly expanding into Tier 2 cities and beyond, where demand is rising due to greater awareness, enhanced focus on child safety and well-being, and a steadily increasing paying capacity driven by improving economic conditions.

Premiumisation and Willingness to Spend

Consumers are showing a greater willingness to pay premium prices for higher quality, branded childcare products, spurred by a shift in preferences towards trusted and superior offerings.

The UAE Retail and Childcare Products Market

The UAE retail market, valued at 6.7-6.9 trillion (approximately USD 84-86 billion) in FY 2023-24, has shown strong recovery post-pandemic, driven by resilient consumer demand, robust tourist spending, a thriving mall culture, and a growing expatriate base. The e-commerce market was sized 1-1.2 trillion (approximately USD 13-15 billion) in FY 2023-24. It is projected to reach 2.2-2.4 trillion (approximately USD 28-30 billion) by FY 2028-29, increasing its share of total retail from 16% in FY 2023-24 to approximately 25% in FY 2028-29.

Retail market growth is propelled by widespread smartphones and internet penetration, strong multi-channel consumer behaviour, and rising disposable incomes.

The UAE Childcare Products Market

Within the broader retail ecosystem in the UAE, the childcare products market stood at 205-215 billion (approximately USD 2.6-2.7 billion) in FY 2023-24 and is projected to grow at a CAGR of 3-5% to reach 240 280 billion (approximately USD 3-3.5 billion) by FY 2028-29. This growth is driven by increasing digital adoption, the rise of niche childcare-focussed e-commerce brands, and a growing consumer shift towards trusted and branded offerings.

The organised sector in the UAE is gaining momentum, with both vertical specialists and horizontal platforms expanding their presence. These players are capitalising on the growing demand for quality childcare products and the convenience of online shopping, playing a key role in driving overall market growth.

The KSA Retail and Childcare Products Market

KSAs retail market, valued at 10.6-10.8 trillion (approximately USD 133-135 billion) in FY 2023-24, witnessed a strong post-pandemic recovery. This rebound has been supported by resilient consumer demand, a revival in tourism, rising retail expenditure in key urban centres, and the sustained expansion of the e-commerce sector.

The e-commerce market in KSA was estimated at 1.3-1.5 trillion (approximately USD 16-19 billion) in FY 2023-24 and is expected to grow to 3.2-3.4 trillion (approximately USD 40-42 billion) by FY 2028-29. This growth is underpinned by widespread smartphone, internet penetration, a large young population, and continued momentum under the Vision 2030 plan.

E-commerce penetration within the overall retail market is projected to increase from ~13% in FY 2023-24 to ~22% by FY 2028-29.

KSA Childcare Products Market

Within this broader retail environment, which includes multi-channel models, KSA represents the largest childcare products market in the GCC, with an estimated market size of 535-545 billion (approximately USD 6.7-6.8 billion) in FY 2023-24. The market is projected to reach 640-680 billion (approximately USD 8-8.5 billion) by FY 2028-29, reflecting a CAGR of 3-5% from FY 2023-24 till FY 2028-29. Growth is being driven by the increasing presence of global brands, deeper e-commerce penetration, higher female workforce participation, enhanced awareness around child health and safety, and the availability of an extensive range of products on digital platforms.

Indian Preschool Market

The Indian preschool market, which stood at 285-295 billion (approximately USD 3.6-3.7 billion) in FY 2019-20, experienced a temporary setback due to the Covid-19 pandemic. However, it has shown strong resilience, rebounding to 325-335 billion (approximately USD 4-4.2 billion) in FY 2023-24. Looking ahead, the market is projected to grow at a CAGR of 13-15%, reaching around 638-658 billion (approximately USD 8-8.2 billion) by FY 2028-29. Notably, this projected value growth outpaces the expected CAGR of 9 to 11% in the number of preschools, indicating increasing per-capita spend due to premiumisation of the market. Indias preschool landscape, which comprised an estimated 160,000 to 170,000 centres in FY 2019-20, experienced a temporary setback during the Covid-19 pandemic. However, with the reopening of schools and a return to routine, the sector staged a strong recovery, reaching approximately the same level as in FY 2019-20 (160,000 to 170,000 preschools) in FY 2023-24. Buoyed by rising demand for early childhood education and increased awareness among parents, the market is expected to grow at a robust CAGR of 9 11%, with the total number of preschools projected to reach 260,000 to 270,000 by FY 2028-29. This surge is backed by a changing urban fabric: more nuclear families, more working parents, and greater disposable income. These factors are driving up demand for quality early education and dependable childcare options.

As the trend of premiumisation gains momentum within Indias preschool sector, per-capita spends on early childhood education are steadily increasing. This growth is underpinned by an expanding middle class, more informed parental decision-making, and a broader societal shift towards prioritising quality in education. Government initiatives also play a pivotal role, laying the groundwork for universal access to preschool education across the country.

Indian Diaper Manufacturing Market

Indias baby diaper market is experiencing robust growth, driven by a confluence of demographic and socio-economic factors. Rising disposable incomes, an increase in birth rates, and a demographic shift from extended joint families to smaller nuclear households are all contributing to a heightened demand for convenient and hygienic baby care solutions. The Indian diaper manufacturing market has demonstrated consistent growth at a CAGR of ~14% since FY 2016-17, reaching 92-94 billion (approximately USD 1.2 billion) in FY 2023-24. Driven by rising penetration in Tier 2 and beyond, the market is projected to expand at a CAGR of ~15-17%, reaching 185-195 billion (approximately USD 2.3-2.4 billion) by FY 2028-29.

The baby diaper sector is marked by strong domestic manufacturing capabilities. With over 95% of diapers produced locally in FY 2023-24, the industry benefits from a resilient and largely self-sufficient supply chain.

Indian Direct to Consumer (D2C) Brands Market

Indias Direct-to-Consumer (D2C) brands sector has evolved into one of the fastest-growing segments of the overall retail ecosystem, propelled by the rise of digital infrastructure, growing internet penetration, and a shift in consumer preference towards direct and personalised experiences. This model has gained momentum as consumers increasingly prefer seamless online shopping experiences, competitive pricing, and unique product offerings. While most brands follow a multi-channel approach, they are integrating both online and offline medium to reach the end-user.

Indias retail market is expected to grow significantly, driven by rising disposable incomes, favourable demographics, and a steady transition from unorganised to organised retail. This transformation is being enabled by advancements across the retail value chain, including better supply chain integration, more efficient inventory management, and stronger last mile delivery networks. This sector is entering a new phase of expansion led by digital transformation, with a growing share of consumers shifting their spending online. The proliferation of smartphones, widespread acceptance of digital payments, and the emergence of hyperlocal delivery services have been pivotal in this digital shift, particularly in Tier 2 and 3 cities. Consumers are increasingly gravitating towards direct-to-consumer (D2C) brands that offer curated, category-specific products, competitive pricing, and direct engagement models. Significantly, categories such as beauty and personal care, home and kitchen, fashion and lifestyle, and mother and baby care have emerged as strong growth areas for D2C players.

Indias branded products retail market across key categories, including but not limited to Grocery, Fashion, Consumer Electronics, and Beauty and Personal Care, was valued at approximately 14.4-16 trillion (approximately USD 180 to 200 billion) in FY 2023-24. Within this broader market, emerging and independent D2C brands with a digital-first retail approach to retailing recorded sales of approximately 630-640 billion (approximately USD 7.9-8 billion) in FY 2023-24, which is expected to grow at a compound annual growth rate of approximately 33-35%, reaching around 2,720-2,760 billion (approximately USD 34-35 billion) by FY 2028-29.

Total Addressable Market

FirstCrys total addressable market (TAM) was estimated at approximately 3,865-4,000 billion (approximately USD 48-50 billion) in FY 2023-24 and is projected to grow at a robust CAGR of ~11-13% to reach around 6,670-7,070 billion (approximately USD 83-88 billion) by FY 2028-29. The TAM comprises the India Childcare Products Market, the Childcare Products Markets in the KSA and the UAE and the India Preschool Market. Among these, the India

Childcare Products and Preschool segments are anticipated to witness the fastest growth, driven by rising disposable incomes, increasing awareness of early childhood development, and expanding urbanisation. Globalbees, a D2C roll-up platform, operates in the D2C Brands market in India, whose total addressable market is expected to grow from approximately 630-640 billion (approximately USD 7.9-8 billion) in the Financial Year 2024 to reach 2,720-2,760 billion (approximately USD 34-35 billion) by FY 2028-29 growing at a CAGR of 33-35%.

Company Overview

We are Indias largest multi-channel retailing platform for mothers, babies, and kids products by GMV*.

We operate one of Indias largest platforms catering to parenting needs through commerce, content and community, and education. Established in CY 2010, we started with a vision of becoming a one-stop destination for parents. We believe that a babys first cry is a special moment for parents, and we aim to make such moments of the parenting journey filled with joy and happiness. By engaging with mothers from the stages of pregnancy and continuing support until a child reaches approximately 12 years of age, our platform builds a long-term, high-frequency relationship that evolves with a childs growing needs across various life stages.

We have strategically expanded to the UAE and the KSA, leveraging our India playbook such as building and offering high-quality home brands, creating content and community approach, supported by robust in-house capabilities and data-driven insights.

We organise our business into the following four segments:

India Multi-Channel Business

Since inception in CY 2010, our India Multi-Channel Business has been at the forefront of building a full-stack platform for parenting needs in India. We have focussed not only on commerce, but also on providing trusted content and fostering community engagement. We envisioned FirstCry as a holistic companion for parents, supporting them across the entire journey, a strategy that has remained core to our operating model and growth initiatives over the years.

The India Multi-Channel platform operates as a deeply integrated ecosystem combining:

Our India Multi-Channel Business is uniquely positioned to serve parenting needs from nine months before birth up to approximately 12 years of age, with an extensive assortment across categories including apparel (clothing & footwear), toys, baby gear & nursery, personal care, hygiene essentials and others.

As of March 31, 2025, we have curated a portfolio of approximately 1.6 million SKUs across leading Indian and global brands alongside our trusted and well-curated portfolio of home brands. Some of our key home brands include BabyHug, Babyoye, CuteWalk, and Pine Kids. This robust assortment ensures that parents across income levels and preferences find relevant, high-quality offerings under one unified platform.

Through targeted brand architecture and curated offerings aligned with each stage of childhood, these home brands not only drive higher customer loyalty but also strengthen operating margins. We also leverage a network of 800+ contract manufacturers across India and overseas for our home brands. Three of our subsidiaries, Swara Baby, Swara Hygiene and Solis Hygiene, manufacture diapering products. As of March 31, 2025, we have a network of 83 dedicated warehouses and stockists, through which we provide same-day delivery in more than 40 cities and next-day delivery in more than 1,000 cities in India, through third-party logistics providers.

Strong Financial and Operational

Performance for FY 2024-25

Our India Multi-Channel Business continued to deliver strong growth and profitability in FY 2024-25, reaffirming the . strength of ourintegrated strategy

Annual Unique Transacting Customers grew to 10.1 million, up by 17% from 8.7 million in FY 2023-24, reflecting the platforms increasing stickiness and customer trust.

Orders increased by 16% from 34.1 million in FY 2023-24 to 39.5 million in FY 2024-25.

Average Order Value reached 2,229, up from 2,226 in FY 2023-24.

Gross Merchandise Value (GMV) grew by 16% year-on-year to 88,090 million in FY 2024-25, up from 75,827 million in the previous year.

Revenue from operations stood at 52,785 million for FY 2024-25 compared to 45,795 million in FY 2023-24, registering a 15% year-on-year growth.

Adjusted EBITDA rose sharply, reaching 4,997 million in FY 2024-25, up from 4,040 million in FY 2023-24, registering a 24% year-on-year growth.

Adjusted EBITDA margins improved to 9.5% for FY 2024-25, up from 8.8% in FY 2023-24. This was primarily driven by expansion in gross margin resulting from increase in share of home brands, change in category mix and operational efficiencies, and operating leverage.

The growth trajectory mirrors strong consumer engagement across both online and offline formats and a deeper penetration across India. This was evident from the fact that 38% of Gross Merchandise Value (GMV) generated by top 20 cities in India in FY 2024-25 was from cross-channel customers, (i.e.) customers transacting both online and offline

Growth Drivers: India Multi-Channel Business

Several underlying trends are driving the sustained momentum of our India Multi-Channel Business:

Evolving Consumer Behaviour and Favourable Demographics: Favourable demographics such as the growing Gen Z and Millennial parent population, rising share of working women, increasing nuclear families, urbanisation, and higher per capita income are significantly influencing consumption patterns. Parents are now more digitally connected, brand-conscious, and value-driven. This has led to a rising preference for trendy, safe, and reliable childcare products, increased acceptance of premium price points, and stronger trust in established and emerging brands like our home brands.

Multi-Channel Synergies: The seamless integration of online and offline touchpoints enables cross-selling, better inventory rotation, and personalised customer journeys, strengthening overall customer lifetime value.

Tier 2+ Expansion: Penetration in tier 2 and beyond cities is increasing, driven by rising disposable incomes, greater digital adoption, and growing awareness around child health and well-being. Our physical store network complements digital reach in these regions, offering parents easy access to trusted products.

Shorter Replacement Cycles: The fast-evolving needs of babies and children aged 0-12 years are resulting in shorter product lifecycle and increased purchase frequency, supporting robust repeat demand across categories like clothing, footwear, consumables, and baby gear.

Community Trust Advantage: Our integrated community on the FirstCry app not only offers product discovery but also fosters authentic engagement through parenting advice, expert consultations, and peer recommendations. This helps build emotional trust beyond the transactional relationship.

Strategy: India Multi-Channel Business

The India Multi-Channel Business remains central to our broader growth strategy. Our focus areas for the next phase include: Grow our customer base by increasing brand awareness and brand salience through initiatives such as marketing, FirstCry parenting community, Hospital gift hamper programme, FirstCry Club initiative and by expanding our product assortment and SKUs.

Expand our offline and online touchpoints to further strengthen our multi-channel competitive advantage.

Continue to expand our portfolio of home brands by identifying market gaps and building products to address customer needs by leveraging our marketing and customer insights.

Continue to invest in customer acquisition and retention strategies including but not limited to parenting community platform, hospital programme, digital marketing and influencer marketing, to enhance engagement and customer loyalty.

With favourable demographic tailwinds, a growing base of young, digitally savvy parents, and a structurally underpenetrated childcare market, we are uniquely positioned for sustainable and profitable growth in the coming years.

International Business

We commenced our international expansion in CY 2019 with entry into the UAE, followed by Kingdom of Saudi Arabia (KSA) in CY 2022. Both markets, characterised by high birth rates, large market size, strong demand for quality childrens products and higher per capita spends on childcare products, presented an international expansion opportunity for us. We replicated our successful multi-channel playbook from India, offering a wide portfolio of domestic, international, and home brands tailored to local preferences. While the operations are currently online-only in both the UAE and KSA, customers are served seamlessly through the mobile app and website. Our FirstCry mobile app recorded 5.8 million downloads across the UAE and KSA as of March 31, 2025. FirstCry is the largest specialist online Mothers, Babies and Kids product retail platform in UAE, in terms of GMV and the largest online-first Mothers, Babies and Kids product-focussed retail platform in KSA*. With thousands of SKUs from leading local and global brands, including portfolio of our home brands, and dedicated warehousing and logistics operations in both countries, we are serving diverse commerce needs of parents in these geographies.

Our International Business navigated a challenging macroeconomic and competitive environment in FY 2024-25. While this resulted in a moderation of revenue growth, we continued to strengthen our long-term strategic priorities by focussing on customer engagementandoperationalefficiency.

Financial and Operational Performance for FY 2024-25

Annual Unique Transacting Customers reached 0.5 million, marking a 14% increase from 0.4 million in FY 2023-24, reflecting continued customer engagement despite external headwinds.

Total orders rose to 1.9 million in FY 2024-25, up 8% from 1.8 million in FY 2023-24.

Average Order Value reached 9,197 in FY 2024-25, up from 8,582 in FY 2023-24, recording a growth of 7%.

Gross Merchandise Value (GMV) for the year stood at 17,763 million, up 15% from 15,384 million in the previous year.

Revenue from Operations amounted to 8,586 million, a 14% growth compared to 7,537 million in FY 2023-24.

Adjusted EBITDA was (1,401) million in FY 2024-25, as compared to (1,396) million in FY 2023-24.

Adjusted EBITDA Margin improved to (16.3%) in FY 2024-25, as compared to (18.5%) in FY 2023 24, supported by ongoing efforts of expanding margins, optimising cost structures and enhancing operational efficiency.

Globalbees Brands

Through Globalbees Brands, we have created a digital-first platform to profitably scale D2C brands across select categories in India. We hold a 50.73%(1) stake (on a fully diluted basis) in Globalbees Brands. It operates a portfolio of multiple D2C brands and sells across multiple online horizontal and vertical marketplaces. These brands span across four core categories: Home Improvement & Utilities, Home Appliances, Active, Lifestyle & Accessories, and Health & Personal Care. It offers a wide range of products such as home care and decor, home improvement accessories, fitness and health supplements, personal grooming essentials, and kitchen and home appliances, among others. Globalbees provides an ideal ecosystem for D2C brands to scale efficiently and profitably.

While its growth in initial years was driven by strategic acquisitions, the last of which took place in September 2022, the business has since evolved entirely through organic expansion. By combining product diversity with operational excellence, Globalbees is strategically positioned to capitalise on Indias growing digital consumption and strengthen our presence in the broader e-commerce ecosystem.

Financial and Operational Performance for FY 2024-25

Revenue stood at 15,777 million in FY 2024-25 compared to 12,093 million in FY 2023-24, recording a 30% growth.

Adjusted EBITDA stood at 221 million, reflecting an exponential growth of 9x as compared to the previous fiscal year. This was driven by growing brand equity across the portfolio, operating leverage and disciplined cost controls.

As of March 31, 2025, Globalbees managed a portfolio of 50+ brands, with products being sold across all major online horizontal and vertical marketplaces, reflecting the breadth of its digital reach.

These achievements underscore Globalbees steady transition towards scalable, profitable growth and its role as a key engine of value creation within the Group.

Note: 1. The data is as of March 31, 2025

*As per the RedSeer Report, for FY 2023-24

Others

FirstCry.com Intelli Education is our education umbrella brand and platform, under which we offer learning aids and core education services (i.e. preschools). FirstCry.com Intelli Education offers products and services ranging from preschools, books, toys, home learning kits, and baby cognitive development programmes.

Sending children to preschool is an anxious moment for parents, and selecting the right preschool in a highly unorganised market is a difficult process for parents in India. Our preschool,

FirstCry Intellitots, aims to address parents preschool requirements by providing quality education. Intellitots Early Learning Centres are for children aged one to six years.

Financial and Operational Performance for FY 2024-25

As of March 31, 2025, we had 363 active preschools, with a total enrolment of 18,470 students across 150+ cities.

In FY 2024-25, the vertical contributed revenue from operations of 425 million as compared to 334 million in FY 2023-24, recording a 27% year-on-year growth rate.

Adjusted EBITDA amounted to 104 million, which denotes adjusted EBITDA margin of 24%.

Key Strengths of our Company

Indias Largest Multi-Channel and Multi-Brand Retailing Platform We are the go-to name in India for multi-brand, multi-channel retail of products for mothers, babies, and kids. With a strong presence both in online and offline through website, mobile application, modern store network and general trade distribution, we offer unmatched convenience and reach. This omnichannel presence (online and offline) allows us to harness economies of scale, build lasting customer trust, and solidify our competitive edge in key markets.

Extensive Product Portfolio across Home and Partner Brands

With more than 1.8 million SKUs across 8,000+ brands ranging from third-party Indian brands, global brands and our home brands, across categories such as clothing, footwear, toys, books, school supplies, diapers, bath and skin care, among others, we offer an extensive choice of products to parents. This thoughtfully curated selection not only improves margins, but also enhances the customer experience, making us a reliable one-stop platform for parents.

High Brand Affinity and Customer Loyalty

We have crafted a brand that parents not only remember but also feel emotionally connected to, since early stage of parenting, through initiatives like hospital gift hampers programme, preschools, and valuable parenting services. This connection sparks repeat engagement and fosters customer loyalty. Nurturing these bonds from the early stages helps us to increase both lifetime value and retention rates of customers.

The Synergy of Content, Community, and Commerce

Our content-first approach connects with parents from the early stages of pregnancy through expert advice and user-generated content, fostering community engagement and boosting regular purchases. This creates a self-sustaining loop of interaction and transactions, lowering acquisition costs and enhancing the overall platform experience, driving steady, long-term growth.

Integrated Supply Chain and Manufacturing Backbone

As at March 31, 2025, we work with more than 800 contract manufacturers to develop products under our home brands. Our in-house developed PLM system helps manage each stage of the production process, thus providing complete control over production management. As at March 31, 2025, our multi-channel retailing platform had an integrated supply chain consisting of 83 warehouses and stockists, supporting 1,156 modern stores and a wide network of distributors and retailers. As at March 31, 2025, we provided same day delivery in more than 40 cities and next day delivery in more than 1,000 cities in India for certain products (that are listed under ‘same day delivery and ‘next day delivery categories on our website), through third-party logistics providers.

Source: RedSeer report titled ‘Childcare Market in India dated July 11, 2024

Financial Overview (on Consolidated Basis)

We have showcased significant financial progress during FY 2024-5. As of March 31, 2025, we have reported a consolidated net loss of (2,648) million, marking a substantial reduction compared to the (3,215) million in the previous fiscal year. This improvement in net loss was accompanied by an 18% year-over-year increase in consolidated revenue from operations, reaching 76,596 million, up from 64,809 million in the previous year.

The growth was driven by growth across all four business segments.

Particulars (in million)	FY 2024-25	FY 2023-24	Y-o-Y change	FY 2024-25	FY 2023-24
India Multi-Channel	52,785	45,795	15.3%	68.9%	70.7%
International	8,586	7,537	13.9%	11.2%	11.6%
Globalbees	15,777	12,093	30.5%	20.6%	18.7%
Others	425	334	27.4%	0.6%	0.5%
Inter-Company Adjustments	(976)	(950)
Total Revenue	76,596	64,809	18.2%	100%	100%

India multi-channel business remains the most significant vertical, accounting for approximately 68.9% and 70.7% of the total revenues for FY 2024-25 and FY 2023-24 respectively. It continues to be a dominant contributor to the Groups overall revenue. International business contributed 11.2% and 11.6% of the total revenues for FY 2024-25 and FY 2023-24 respectively. Globalbees, with contribution of 20.6% and 18.7% of the total revenues for FY 2024-25 and FY 2023-24, respectively and Others are emerging fast-growing segments that have shown stronger growth during

FY 2024-25.

Revenue of India Multi-channel business witnessed more than 15% growth and revenue of International business witnessed around 14% growth, driven by an increase in annual unique transacting users, orders and therefore GMV. The 30.5% increase in revenue growth in Globalbees was mainly driven by organic growth in existing portfolio of brands. The revenue growth in other businesses was driven by the growth in number of preschools and students enrolled. India multi-channel, Globalbees and other businesses segments continued to strengthen profitability by expanding margins, while

International business segment improved margins by expanding gross margins, optimising cost structures and driving operational efficiency. As a result, the consolidated Adjusted EBITDA for

FY 2024-25 stood at 3,935 million, up from 2,744 million in the last fiscal year. For FY 2024-25, the Consolidated Adjusted EBITDA Margin for the business improved to 5.1% compared to 4.2% in the previous financial year.

Additionally, the Companys diversified income streams, with non-operating income contributing

1,504.77 of its profit before tax, highlight its financial flexibility. However, strengthening core operational earnings will be key to ensuring long-term sustainability and growth.

Profit and Loss Statement (in million)

Particulars	FY 2024-25	FY 2023-24
Revenue from Operations	76,596	64,809
Growth (%)	18.2%	23.2%
Gross Margin	28,610	23,177
Gross Margins (%)	37.4%	35.8%
Employee Expenses	7,284	6,865
Total Operating Expenditure	74,296	64,104
% to Revenue from Operations	97%	99%
Adjusted EBITDA	3,935	2,744
Adjusted EBITDA Margin (%)	5.1%	4.2%
EBITDA	2,300	705
EBITDA Margin (%)	3.00	1.09
Finance Cost	1,583	1,154
Depreciation	4,046	3,709
Other Income	1,505	942
PBT	(2,320)	(3,215)
Total Tax Expense	(328)	0.1
Tax Profit after	(2,648)	(3,215)

During FY 2024-25, employee benefit expenses increased to 7,284 million, compared to 6,865 million in the previous year, reflecting a growth of 6.1%. This rise was primarily due to strategic investments in store expansion and the impact of annual salary increments, including wages and bonuses. Finance costs rose to 1,583 million in FY 2024-25 from 1,154 million in the previous year, marking an increase of 37.2%. The rise in finance costs was mainly driven by increased borrowings undertaken by subsidiaries to support growing business volumes, alongside additional interest costs associated with new COCO (Company-Owned Company-Operated) store lease liabilities.

Depreciation for the year stood at 4,046 million, up from 3,709 million in FY 2023-24, registering a growth of 9.1%, reflecting the continued expansion of the COCO store network. In contrast, other income rose to 1,505 million, up from 942 million in FY 2023-24, indicating a strong growth of 59.7%, mainly due to higher interest income earned on bank deposits.

Key Financial Ratios

Particulars	Units	FY 2024-25	FY 2023-24	% Change
Basic EPS		(4.1)	(6.2)	34%
EBITDA Margins	%	3.0	1.1	190 bps
Gross Profit Margin	%	37.4	35.8	160 bps
PAT Margins	%	(3.4)	(4.9)	150 bps
Inventory Turnover Ratio	Times	3.6	4.0	10%
Trade Receivables Turnover Ratio	Times	27.1	29.7	9%
Trade Payables Turnover Ratio	Times	8.3	7.1	16%
Return on Net Worth	%	(4.0)	(8.7)	461 bps
Return on Capital Employed	%	(1.3)	(5.1)	379 bps
Current Ratio	Times	2.2	2.0	13%
Debt Equity Ratio	Times	0.1	0.1	20%

Note: The definitions of the above-mentioned ratios can be found on page no. 72.

The financial metrics for FY 2024-25 reflect a recovery trend,arked by operational efficiencies and a m reduction in overall losses. Basic EPS improved by 34%, mainly due to a reduction in net losses during the year. EBITDA margins expanded from 1.1% to 3.0% (up by 190 bps), due to higher revenues coupled with operational efficiencies. The gross profit margin strengthened from 35.8% to37.4% (160 bps rise), on account of improved buying margin and economies of scale. PAT margins moved upward from (4.9%) to (3.4%), an improvement of 150 bps, due to higher revenues and operational efficiencies. Return on Net Worth strengthened by 461 bps, improving from (8.7%) to (4.0%) owing to a decline in losses attributable to equity shareholders, while Return on Capital Employed improved by 379 bps, from (5.1%) to (1.3%), as a result of reduced overall losses.

Human Resources

We follow a strategic, people-first approach to human capital management, guided by our leadership. Our people, ‘Bee-zers, are at the heart of our success. We are committed to building a supportive and inclusive workplace where every team member can thrive. Through ongoing learning and development initiatives, we empower our team members with the skills and knowledge to grow and succeed. We foster a culture of belonging grounded in our values and driven by inclusivity, open communication, and empathy, ensuring that everyone feels valued, respected, and encouraged to be their true selves at work.

As of March 31, 2025, the Companys total workforce stood at 3,752 permanent employees.

Risk Management

We adopt a comprehensive and cohesive method for managing risks, designed to maintain business stability, financial robustness, and strict regulatory compliance. Our risk management framework, overseen by the Board of Directors and executed by senior management, is subject to continuous monitoring and regular reporting. This structured approach addresses a wide array of risks and compliance-related challenges.

Risks are systematically identified, assessed, and mitigated through well-defined policies, internal controls, and routine evaluations. With this proactive strategy, we are equipped to respond swiftly to emerging threats, ensuring sustainable growth and the protection of our stakeholders interests.

Macroeconomic Factors

Risk Description: Global and local macroeconomic fluctuations, including interest rates, inflation, and economic growth, can impact consumer confidence as well as the availability of disposable income. As a retailer, this may affect our business operations.

Mitigation Strategy: We offer a variety of products, including third-party global and domestic brands as well as our own home brands, across different price points to cater to customers with varying spending capacities. The majority of our offerings are non-discretionary in nature, rendering them relatively insulated from macroeconomic fluctuations compared to discretionary products. Business teams regularly prepare detailed forecasts and re-evaluate them to ensure availability of relevant merchandise.

Changing Consumer Preferences

Risk Description: Evolving customer preferences, trends, and spending patterns in the mothers, babies, and kids product segments could affect demand for the products sold on our platform. Mitigation Strategy: We continuously broaden our product portfolio by expanding into new subcategories, partnering with high-quality third party global and domestic brands, and launching additional SKUs under our home brands across diverse price points. This approach mitigates dependency on any single category, brand, or customer segment. Our multi-channel availability, including mobile application, website, and various modern store formats, significantly reduces over-reliance on any single touchpoint.

Market Competition

Risk Description: Our financial performance could be impacted by new entrants or increased competition from existing retailers offering similar services.

Mitigation Strategy: We have made significant investments across digital and retail channels to deliver a highly curated customer experience. Our portfolio includes carefully designed home brands as well as high-quality third-party global and domestic brands. We position ourselves as an emotional companion to parents, supporting them through shopping (via personalised mobile app journeys), content (via the FirstCry Parenting Community), and education (via FirstCry Intellitots). Our innovative in-house team is attuned to the evolving macro environment and customer preferences to stay ahead of the competition.

Demographic and Location Dynamics

Risk Description: Rapidly changing demographic patterns and external factors such as construction activities nearby or increasing rental yields could impact the attractiveness and operations of our modern stores.

Mitigation Strategy: We adopt a data-led and scientific approach based on online customer behaviour to identify optimal areas and pin codes for opening modern stores. Our operations are geographically diversified across India, without over-reliance on any single region or state. Most of our stores are located in high-street areas and tier II and beyond cities. We enter long-term contracts to safeguard against rental yield fluctuations and periodically close or relocate stores that no longer meet strategic objectives.

Operational Risk

Risk Description: Evolving customer expectations and reliance on third-party marketing platforms may influence customer acquisition and retention on our platform.

Mitigation Strategy: We have a capable in-house team that closely tracks customer expectations and invests significantly in the right customer acquisition strategies. Our acquisition model is diversified across digital marketing, influencer marketing, hospital gift hamper programmes, and our integrated online-offline ecosystem, which reduces any over-dependence on a single channel of marketing. We employ multiple retention strategies including an active parenting community, a successful club membership programme, and personalised customer journeys to enhance convenience and satisfaction. Acquisition and retention metrics are continuously monitored, with adaptive investment and innovation.

Brand Association Risk

Risk Description: The highly competitive and dynamic nature of retail and e-commerce industries may affect our ability to maintain relationships with existing third-party brands or onboard new ones.

Mitigation Strategy: We host over 8,000 brands on our platform, ensuring no over-dependence on any single brand. We continue to invest significantly in digital and retail capabilities to offer access to a vast and diverse parent customer base, thereby enhancing our appeal to third-party brands.

Brand and Reputation Risk

Risk Description: Any damage to our brand or the reputation of our home brands could adversely affect our business operations.

Mitigation Strategy: We invest in long-term brand building through responsible, customer-centric marketing, offering ecosystem benefits and delivering high-quality products. We actively engage with key stakeholders - customers, vendors, franchise partners, brands, and manufacturers - to understand their concerns and preferences and strive for continual service improvement.

Legal and Compliance Risk

Risk Description: Changing regulations in India and globally could introduce new and uncertain compliance requirements, potentially impacting our business, operations, or financial health.

Mitigation Strategy: We ensure strict adherence to all applicable regulations. Our competent in-house compliance team proactively monitors regulatory changes and implements necessary measures to maintain full compliance.

People Risk

Risk Description: Our business performance is reliant on management and skilled personnel. Failure to attract, retain, or motivate employees could adversely affect operations.

Mitigation Strategy: We make substantial investments in attracting top talent from diverse backgrounds. We uphold a high-performance culture rooted in diversity and inclusion while equipping employees with essential tools for upskilling and reskilling.

Technology and IT Risk

Risk Description: Our technology infrastructure is vulnerable to disruptions, failures, security breaches, and cyberattacks, all of which may harm our business and reputation.

Mitigation Strategy: We deploy advanced security frameworks, encryption, and fraud prevention mechanisms to ensure top-tier data protection. A robust security orchestration system integrates multiple tools for real-time threat detection and automated response. Regular security audits are conducted to enhance our security posture and regulatory compliance.

Internal Control Systems

We consider strong internal financial controls to be a fundamental part of our governance and risk management framework. These controls help us manage financial and operational risks, ensure compliance with our policies, safeguard our assets, and maintain the accuracy and reliability of our financial reporting.

We have established an internal financial control system that is appropriate for the size and complexity of our business. This system ensures that all transactions are properly authorised, recorded accurately, and reported in a timely manner, allowing us to produce dependable financial information that meets applicable accounting standards. Wherever possible, we have automated key controls and embedded them into our everyday business processes.

Further, with the support of an appointed Internal

Audit firm, we carry out risk-based Internal audit reviews, based on the annual Internal Audit plan as approved by the Audit Committee of the Board. Our

Statutory Auditors have issued an unqualified report for the year ending March 31, 2025 after testing the effectiveness of these controls.

Cautionary Statement

This report contains statements that may include ‘forward-looking remarks within the meaning of applicable Securities Laws and Regulations. It is important to note that numerous factors could cause the actual results, performances, or achievements of our Company to be materially different from any future results, performances, or achievements. Significant factors that could impact our Companys operations include changes in domestic and international economic conditions, alterations in Government regulations, changes to the tax regime, modifications to other statutes, among others.

Industry Terms

Term	Description
Gross merchandise Value (GMV)	Includes the monetary value of Orders inclusive of taxes and gross of discounts, if any, across the FirstCry website, mobile application and FirstCry and BabyHug modern stores, including those operated by Digital Age and franchisees, net of order cancellations, gross of franchisee commission, net of shipping and cash on delivery charges and prior to product returns.
Average Order Value (AOV)	Average Order Value is GMV generated across the FirstCry website, mobile application, FirstCry modern stores and BabyHug modern stores divided by orders considered for such GMV.
Adjusted EBITDA	Adjusted Earnings before interest, tax, depreciation and amortisation is calculated as the restated profit for the period or year plustax expense, finance cost, depreciation and amortisation expenses less other income, exceptional items income (net), plus Employee Share-Based Payment Expenses, Deal related cost, Salaries, wages, bonus and other allowances accounted as per para B55 of Ind AS 103.
Annual Unique Transacting Customer	Unique users that made at least one purchase on the FirstCry platform during the preceding 12-months period on the reporting date. Unique customers/ visitors are identified as unique by their mobile number, on the basis of which duplication across website, mobile application and stores is removed.
Orders	Total orders across website, mobile application, FirstCry modern stores and BabyHug modern stores including those operated by Digital Age and franchisees prior to product returns.
Number of Brands	Number of active brands as on the date of respective period end listed across the FirstCry website, mobile application and FirstCry modern stores and BabyHug modern stores, including those operated by Digital Age.
Number of SKUs	Number of SKUs as on the date of respective period end across the FirstCry website, mobile application and FirstCry and BabyHug modern stores, including those operated by Digital Age.
Warehouses and Stockists	Number of warehouses and stockists where our Company stores its inventory.
Segment Margin	Segment Margin is calculated by dividing segment results with segment revenue from operations.