FirstCry Subsidiary GlobalBees Faces Insolvency Plea Over INR 65 Crore Dues

An insolvency plea has been filed against its substantial subsidiary, GlobalBees Brands, over claimed unpaid dues of almost INR 65 crore, according to Brainbees Solutions, the parent company of omnichannel baby products store FirstCry.

Ashutosh Garg, Paritosh Garg, and Manju Agarwal have petitioned the National Company Law Tribunal's (NCLT) New Delhi bench under Section 7 of the bankruptcy and Bankruptcy Code (IBC) in an attempt to start bankruptcy proceedings against GlobalBees, according to a filing made to stock markets on June 18 by Brainbees.

The total amount requested is INR 64.92 crore, with interest at the rate of 18% per year starting on May 9, 2025.

GlobalBees Planning to Challenge the Plea

According to Brainbees, GlobalBees, which owns and invests in a portfolio of consumer brands that prioritise digital technology, is actively looking for legal counsel and intends to contest the plea even during the admissions process.

In the filing, the company stated that it is impossible to determine the financial impact on the company and that it depends on how the aforementioned proceedings and any ensuing legal challenges turn out.

Financial Dynamics of FirstCry

According to a business filing on May 26, FirstCry recorded a net loss of INR 111.5 crore for the fourth quarter of FY25, which increased from INR 43.2 crore in the same period last year.

In the prior quarter, FirstCry posted a loss of INR 14.7 crore. One factor contributing to the company's losses in the March quarter was a one-time loss of INR 36.7 crore.

Nonetheless, the loss for the entire fiscal year decreased by 18% to INR 264.8 crore in FY25 from INR 321.5 crore the year before. In Q4FY25, the company's operating revenue increased 16% year over year to INR 1,930.3 crore from INR 1,668.9 crore the previous year.

Compared to INR 2,172.3 crore in the prior quarter, the revenue decreased by 11%. In FY25, the company's consolidated operating revenue was INR 7,810.1 crore, a 19% increase over FY24's INR 6,550 crore.

Brainbees' Financial Outlook

 In contrast, the FirstCry parent company's total expenses rose 17% to INR 1,914.4 crore in the quarter that ended in March, from INR 1,633.7 crore in the same period last year and INR 2,064.4 crore in the previous quarter.

The company's expenses for the entire year totalled INR 7,429.6 crore, a 16% increase over INR 6,410.4 crore the year before.

According to multiple news reports, the Bureau of Indian Standards (BIS) carried out a significant search and seizure at a FirstCry warehouse the day after it released its quarterly results.

The items seized included toys, sippers, and other items valued at nearly INR 1.43 crore, which were allegedly sold without the required BIS certification.