Brainbees Solutions Ltd., parent company of baby-care e-commerce brand FirstCry, revealed that the Bureau of Indian Standards (BIS) carried out a surprise inspection at its Bengaluru warehouse on May 26, 2025. The raid resulted in the seizure of inventory valued at around ₹90 lakh, linked to alleged violations of hallmarking norms under the BIS Act, 2016.
The regulatory action, executed under Section 28 of the Act, stems from claims that some products lacked proper hallmarking or standard compliance—potentially breaching Section 14(6). BIS concluded the search and seizure on the same day at a facility in Bheemakkanahalli Village, Hoskote Taluka.
Company Denies Violations, Seeks Legal Advice
In its filing, FirstCry denied any non-compliance, stating, “The company believes all products adhere to BIS standards” and confirmed it is seeking legal consultation. It emphasized continued cooperation with authorities and noted that warehouse operations and deliveries remain unaffected.
No Major Financial Fallout—Yet
The company has clarified that the seizure hasn’t had a significant financial impact. This episode comes on the heels of an earlier GST department probe in Mumbai in November 2024.
The BIS raid coincided with FirstCry’s Q4FY25 earnings, where it posted a 16% revenue rise to ₹1,930.3 crore. However, net losses spiked to ₹111.5 crore, over double from the same period last year.
This episode amplifies the spotlight on compliance as India tightens scrutiny on product standards—especially in child-focused consumer sectors.
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