The parent company of India’s Firstcry childcare products brand is planning to expand its operations in Saudi Arabia, according to a news report.

The move by Brainbees Solutions comes following the higher average expenditure on childcare products in the kingdom, which is nearly eight times that of India, Business Standard, an Indian financial newspaper, reported.

The Softbank-backed company, which submitted its draft red herring prospectus in December 2023, plans to allocate Rs 1.55 billion ($18.65 million) from its initial public offering (IPO) proceeds to enhance its presence in the Gulf country.

According to the prospectus, Firstcry plans to invest Rs 730 million in opening 12 new outlets across Saudi Arabia.

It is also looking to invest Rs 830 million to establish a warehouse facility spanning 250,000 square feet, which will boost distribution capabilities and offline presence within the Kingdom.

Saudi Arabia is the largest market for childcare products within the Gulf Cooperation Council (GCC) region, with an estimated value of $6.2 billion in 2022.

The market is expected to grow at an annual rate of 4% until 2027, potentially reaching between $7.4 billion and $7.9 billion, the newspaper said, citing the prospectus.

(Editing by Brinda Darasha; brinda.darasha@lseg.com)