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Womencart IPO plans to raise around ₹9.56 Cr through an IPO with a sale of up to 1,112,000 shares equity shares of ₹10 each. WomenCart is an online retail platform catering to a wide range of beauty brands and wellness products for skin care, hair care, and body care for both men and women.

About Womancart Ltd.

• Company started its operations in FY 2019-20 with an offline grocery store- “The Family Store” at Paschim Vihar, New Delhi. This store was earlier run by Mrs. Veena Pahwa, Promoter since 2015.
• Company added beauty and wellness products in this store over a period of time.
• Company discontinued the operations of this store from July 2021, which now is used as a warehouse.
• In July 2021,Company launched its website- womancart.com and started selling online various beauty and wellness products.
• The offline store was launched in Shalimar Bagh, Delhi in April 2022. In FY 2022-23, Company launched its own brands – Wondercurve, Sayda Jewels, Faeezah & Feya.
• It further launched second store in Model Town, Delhi along with a Kiosk in Pacific Mall, Pitampura, Delhi.
• Company also incorporated its 4 subsidiaries in the second half of FY 2022-23, which took over the running online businesses listings on online website. The fifth subsidiary M/s Varadda Overseas Private Limited shareholding was taken over from promoters during same period.
• Company is primarily a digital consumer centric retail platform, providing wide range of classic and emerging branded beauty and wellness products for skin care, body care, hair care, fragrance for both men and women at the comfort of home.
• Womencart’s product portfolio boasts approximately 10,000 SKUs from its own brand as well as various national and international brands.
• The company owns several brands including Sayda Jewels, which offers a blend of old and new fashion trends; Wondercurve, an online lingerie and intimate apparel brand for women; Faeezah, a clothing brand; and Feya, a hair accessories brand.

Financials: Womencart IPO

Womencart IPO: Salient Points

• Promoters shareholding will drop from 78.01% to 57.40% post the IPO.
• The company plans to use the net proceeds from the offering as follows:

• Company is already having an online shopping platform, through own websites and other offline stores. However, to increase reach and easy accessibility of products, it is intending to launch our own App.
• The company generates 15.49% of its revenue from its owned brands and 84.51% from other brands. The products of the owned brands are procured from specific third-party manufacturers.
• Womencart faces competition with some of the Key Competitors in the Industry such as Nykaa, Purplle, SS Beauty etc. But they are much much larger players and not comparable in any way.
• Detail of Orders, Customers and Average Revenue per Order for the years both offline and online are indicated below:

• The average revenue per order in FY 2020-21 was higher since the Company only had an offline wholesale store.
• The average revenue per order declined in FY 2021-22 due to the second covid wave as wholesale store remained closed for majority of time.
• The average revenue per order in FY 2022-23 is a mix of both offline and online sales.
• It plans to open two stores outside India.
• It has has established relationships with many beauty brands, securing exclusive deals.
• Womencart has a strong online and offline presence, indicated by number of customers served with over 1.8 million page views on its websites, enhancing engagement and sales.
• Womencart IPO is coming at a PE ratio of 72x(fy23 earnings) and 15x PE based on FY24 earning annualized for first 5 month results.
• I may apply in Womencart IPO. It is difficult to draw inference on such small companies with little operating history and it falls in risk category but has potential for reasonable returns too if this growth trajectory continues.
• GMP as reported on social media has been around Rs. 10 which is not very encouraging at this stage.
• SME IPO are quite illiquid and volatile and exit options sometimes is delayed.
• Narnolia Financial Services Ltd is the Lead Manager and has a reasonable but limited record. Past issues handled by them include Cellecor Gadgets, Yudiz Solutions Limited. Drone Destination.
• There are reports that SEBI is of view that SME stocks prone to more market manipulation and SEBI may be looking to curb speculation in SME stocks.

Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . Also Certified in some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.