Table of content
Macobs Technologies Introduction
Macobs Technologies Limited was founded in 2019 and operates within the male grooming industry. The company specializes in the niche area of below-the-belt grooming and conducts its business exclusively through e-commerce channels, such as its website Menhood.
Brief about Macobs Technologies
Summary of the business of Macobs Technologies
We operate an e-commerce platform Menhood.in specializing in below-the-belt grooming products for men. The website offers a curated selection of trimmers, skincare, and various grooming essentials. Operating within the legal framework, menhood.in provides a seamless online shopping experience for customers seeking quality products tailored to male grooming needs.
History
Company was originally incorporated as a private limited company under the Companies Act, 2013 in the name and style of “Macobs Technologies Private Limited” bearing Corporate Identification Number U74999RJ2019PTC066608 dated October 14, 2019.
| Year | Key milestones |
| 2019 | Incorporation |
| Commencement of Business | |
| 2023 | Conversion of Private to Public Limited |
| Change of name of the Issuer Company |
Promoters & Board of Directors
The Promoters of our Company are Shivam Bhateja and Dushyant Gandotra
Board of directors of Macobs Technologies
| Name of Director | Designation |
| Dushyant Gandotra | Managing Director |
| Shivam Bhateja | Whole Time Director |
| Divya Gandotra | Director |
| Priya Goel | Additional Independent Director |
| Sunil Kumar Rana | Additional Independent Director |
Share Holding pattern of Macobs Technologies
| Name of Shareholder | % Holding |
| Promoter | |
| Shivam Bhateja | 32.48% |
| Dushyant Gandotra | 32.48% |
| Promoter Group | |
| Bela Gandotra | 0.01% |
| Divya Gandotra | 0.01% |
| Geeta Bhateja | 0.01% |
| Rajeev Gandotra | 0.01% |
| Public | 35% |
Qualitative Factors
- Strong partnerships, alliances and affiliations with nodal agencies in the area of E-commerce.
- Robust systems and processes across all functions of the company.
- Strong technology backbone supported by a dedicated team of experienced professionals.
- Favourable macro environment.
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Strategy
- Digital Marketing Focus:
- Search Engine Optimization (SEO): Optimizing the company website and product pages to rank higher in search engine results, making it easier for potential customers to find the products online.
- Content Marketing: Creating and sharing valuable content (blog posts, videos, infographics) related to male grooming to engage the audience and position the company as a thought leader in the niche.
- Social Media Marketing: Leveraging platforms like Instagram, Facebook, and Twitter to engage with customers, promote products, and build a community around the brand. This includes influencer partnerships to reach wider audiences.
- Targeted Advertising:
- Pay-Per-Click (PPC) Campaigns: Running online ads on search engines and social media platforms, targeting keywords and demographics relevant to the products.
- Retargeting Campaigns: Implementing retargeting strategies to re-engage visitors who have shown interest in the products but have not made a purchase.
- Customer Engagement and Retention:
- Email Marketing: Sending newsletters, promotional offers, and personalized recommendations to subscribers.
- Loyalty Programs: Implementing a loyalty program to reward repeat customers, encouraging them to make more purchases.
- Market Segmentation and Personalization:
- Demographic and Psychographic Segmentation: Tailoring marketing efforts to specific segments based on age, location, lifestyle, and grooming habits.
- Personalized Recommendations: Using customer data to provide personalized product suggestions on the website and in marketing communications.
- E-Commerce Optimization:
- User-Friendly Website Design: Ensuring the e-commerce platform is intuitive, easy to navigate, and mobile-friendly.
- Secure and Efficient Checkout Process: Streamlining the checkout process to reduce cart abandonment and ensure a secure transaction.
- Data-Driven Decision Making:
- Analytics and Feedback: Regularly analyzing website and campaign data to understand consumer behavior and preferences. Using customer feedback to improve products and services.
- Educational and Awareness Campaigns:
- Awareness Initiatives: Conducting campaigns to educate the market about below-the-belt grooming, addressing misconceptions, and breaking down societal taboos.
- Community Building: Creating forums or online communities where customers can discuss grooming topics, share experiences, and offer feedback.
Industry Outlook
INTRODUCTION TO E-COMMERCE INDUSTRY IN INDIA
In recent years India has experienced a boom in internet and smartphone penetration. The number of internet connections in 20 21 increased significantly to 830 million, driven by the ‘Digital India’ programme. Out of the total internet connections, ~55% of connections were in urban areas, of which 97% of connections were wireless. The smartphone base has also increased significantly and is expected to reach 1 billion by 2026. This has helped India’s digital sector and it is expected to reach US$ 1 trillion by 2030. This rapid rise in internet users and smartphone penetration coupled with rising incomes has assisted the growth of India’s e- commerce sector. India’s e-commerce sector has transformed the way business is done in India and has opened various segments of commerce ranging from business-to-business (B2B), direct-to-consumer (D2C), consumer-to-consumer (C2C) and consumer-to- business (C2B). Major segments such as D2C and B2B have experienced immense growth in recent years. India’s D2C market is expected to reach US$ 60 billion by FY27. The overall e-commerce market is also expected to reach US$ 350 billion by 2030 and will experience 21.5% growth in 2022 and reach US$ 74.8 billion.
MARKET SIZE
The Indian online grocery market is estimated to reach US$ 26.93 billion in 2027 from US$ 3.95 billion in FY21, expanding at a CAGR of 33%. India’s consumer digital economy is expected to become a US$ 1 trillion market by 2030, growing from US$ 537.5 billion in 2020, driven by the strong adoption of online services such as e-commerce and edtech in the country.
Indian e-commerce is expected to grow at a compound annual growth rate (CAGR) of 27% to reach US$ 163 billion by 2026.
In FY23, the Gross Merchandise Value (GMV) of e-commerce reached US$ 60 billion, increasing 22% over the previous year. In FY22, the GMV of e-commerce stood at US$ 49 billion.
India’s Business-to-Business (B2B) online marketplace would be a US$ 200 billion opportunity by 2030.
According to a Deloitte India Report, as India is moving towards becoming the third-largest consumer market, the country’s online retail market size is expected to reach US$ 325 billion by 2030, up from US$ 70 billion in 2022, largely due to the rapid expansion of e-commerce in tier-2 and tier-3 cities.
The B2C E-commerce is expected to grow steadily over the forecast period, recording a CAGR of 8.68% during 2023-27. According to a recent report by Redseer, India’s e-B2B market is projected to reach a GMV of US$ 100 billion by 2030.
According to Grant Thornton, e-commerce in India is expected to be worth US$ 188 billion by 2025.
With a turnover of US$ 50 billion in 2020, India became the eighth-largest market for e-commerce, trailing France, and a position ahead of Canada.
Propelled by rising smartphone penetration, the launch of 4G network and increasing consumer wealth, the Indian E-commerce market is expected to grow to US$ 200 billion by 2026 from US$ 38.5 billion in 2017.
After China and the US, India had the third-largest online shopper base of 150 million in FY21 and is expected to be 350 million by FY26.
Indian consumers are increasingly adopting 5G smartphones even before the rollout of the next-gen mobile broadband technology in the country. Smartphone shipments reached 169 million in 2021 with 5G shipments registered a growth of 555% year-on-year over 2020. Indian consumers are increasingly adopting 5G smartphones even before the rollout of the next-gen mobile broadband technology in the country. Smartphone shipments reached 150 million units and 5G smartphone shipments crossed 4 million in 2020, driven by high consumer demand post-lockdown. According to a report published by IAMAI and Kantar Research, India’s internet users are expected to reach 900 million by 2025 from ~622 million internet users in 2020, increasing at a CAGR of 45 % until 2025.
For the 2021 festive season, Indian e-commerce platforms generated sales with a Gross Merchandise Value (GMV) of US$ 9.2 billion, a 23% increase from last year’s US$ 7.4 billion.
ROAD AHEAD
The E-commerce industry has been directly impacting micro, small & medium enterprises (MSME) in India by providing means of financing, technology and training and has a favourable cascading effect on other industries as well. The Indian E-commerce industry has been on an upward growth trajectory and is expected to surpass the US to become the second-largest E-commerce market in the world by 2034. Technology-enabled innovations like digital payments, hyper-local logistics, analytics-driven customer engagement and digital advertisements will likely support the growth in the sector. India is also planning to introduce Open Network for Digital Commerce (ONDC). ONDC will enable e-commerce platforms to synchronize search results on all the e-commerce platforms and display products and services from every platform. This will further boost business for MSMEs and help fuel India’s e-commerce growth. The growth in the sector will further encourage employment, increase revenues from export, increase tax collection by exchequers, and provide better products and services to customers in the long term.
India has gained 125 million online shoppers in the past three years, with another 80 million expected to join by 2025, according to a report by Kantar.
The Indian e-commerce sector is likely to expand in different markets. India’s e-retail market is expected to continue its strong growth – it registered a CAGR of over 35% to reach Rs. 1.8 trillion (US$ 25.75 billion) in FY20. Over the next five years, the Indian e-retail industry is projected to exceed ~300-350 million shoppers, propelling the online Gross Merchandise Value (GMV) to US$ 100-120 billion by 2025.
According to Bain & Company report, India’s social commerce gross merchandise value (GMV) stood at ~US$ 2 billion in 2020. By 2025, it is expected to reach US$ 20 billion, with a potentially monumental jump to US$ 70 billion by 2030, owing to high mobile usage.
Business Data
Verticals
- Electronics
- Grooming
Supplier dependency
(In Lakhs)
| Particulars | September 30, 2023 | Fiscal 2023 | Fiscal 2022 | Fiscal 2021 | ||||
| Amount | In % | Amount | In% | Amount | In% | Amount | In% | |
| Top 5 Suppliers | 172.43 | 46.56% | 270.48 | 86.63% | 84.71 | 75.48% | 24.06 | 87.72% |
| Top 10 Suppliers | 206.78 | 55.84% | 280.41 | 89.80% | 91.85 | 81.83% | 26.93 | 98.20% |
Competition
In the male grooming industry, the competitive landscape is multifaceted and dynamic, characterized by a blend of established multinational corporations and agile startups. These competitors offer a broad spectrum of products ranging from traditional grooming essentials like shavers and skincare products to more specialized items catering to niche segments such as below-the-belt grooming, a domain where our Company holds a significant presence.
The rise of e-commerce has reshaped the competitive terrain, with most players leveraging online platforms not only for sales but also for marketing and customer engagement. This digital shift has intensified competition, as brands are now able to reach a wider audience more efficiently than ever before. The industry sees a continuous influx of innovative product offerings, driven by evolving consumer preferences towards personalized, natural, and eco-friendly grooming solutions. This innovation race compels companies, including ours, to consistently invest in research and development to stay relevant.
Price competition remains a pivotal factor, with brands offering products at diverse price points to attract different customer segments. The landscape is also witnessing an increased emphasis on sustainability and ethical production practices, responding to a growing consumer demand for responsible and environmentally conscious brands. Furthermore, companies are focusing on enhancing customer experience, employing advanced technologies like AI for personalized product recommendations and improved online shopping experiences.
In essence, the competitive landscape in which our Company operates is marked by rapid technological advancements, evolving consumer demands, and a continuous push for innovation and sustainability. These factors combine to create a challenging yet opportunistic environment, requiring strategic agility and customer-centric approaches to maintain a competitive edge.
Peer companies comparison
| Name | Current Price | Revenue | Profit after tax | EBITDA | EBITDAMargin (in %) | Price to Earning | Debt | ROCE(in %) | ROE(in %) |
| Macobs Technologies Limited | 75 | 8.95 | 0.63 | 0.93 | 10.43% | 25.86 | 2.90 | 14.85 | 19.46 |
| FSN E-Commerce Ventures Ltd | 176 | 5,693 | 19.6 | 333 | 5.85% | 1592 | 0.11 | 5.52% | 1.42% |
| Honasa Consumer Ltd | 468 | 1,395 | 9.23 | 65.1 | 4.67% | 135.65 | 3.45 | 7.50% | 1.38% |
| Macobs Technologies Limited | FSN E-Commerce Ventures Ltd | Honasa Consumer Ltd | |||||||
| Key Performance Indicator | Fiscal 2020-21 | Fiscal 2021-22 | Fiscal 2022-23 | Fiscal 2020-21 | Fiscal 2021-22 | Fiscal 2022-23 | Fiscal 2020-21 | Fiscal 2021-22 | Fiscal 2022-23 |
| Revenue from operations | 95.2 | 601.29 | 1478.08 | 2440.9 | 3773.94 | 5143.8 | 459.99 | 931.76 | 1394.8 |
| EBITDA | -0.89 | 57.96 | 285.62 | 158.24 | 164.05 | 257.06 | -1334.02 | 15.62 | 44.66 |
| EBITDA Margin (%) | -0.93% | 9.64% | 19.32% | 6.48% | 4.35% | 5.00% | -290.01% | 1.68% | 3.20% |
| PAT | -1.39 | 40.48 | 204.5 | 61.55 | 41.08 | 19.26 | -1332.22 | 19.87 | -120.56 |
| PAT Margin (%) | -1.46% | 6.73% | 13.84% | 2.52% | 1.09% | 0.37% | -289.62% | 2.13% | -8.64% |
| ROE (%) | -663.04% | 204.91% | 143.76% | 12.57% | 3.07% | 1.40% | – | 2.79% | -19.23% |
| ROCE (%) | -292.18% | 99.18% | 106.02% | 12.64% | 6.87% | 5.55% | – | – | -15.23% |
Business risk factors
- Macobs Technologies electronic products are imported from China and expose us to geopolitical and foreign exchange risk.
- Macobs Technologies is significantly dependent on Major E-commerce Platforms and Digital Media Marketing for the sale of products.
- Company is dependent on few suppliers for purchase of products. Loss of any of these large suppliers may affect business operations.
- Macobs Technologies dependence on third-party manufacturers for all our products subjects us to risks, which, if realized, could adversely affect our business, results of operations, cash flows and financial condition.
- Macobs Technologies have experienced negative cash flows from operating and investing activities in the past.
(₹ in Lakhs)
| Particulars | For period ended September, 2023 | For the year ended March 31, | ||
| 2023 | 2022 | 2021 | ||
| Net Cash from Operating Activities | (249.08) | (33.83) | 55.13 | (3.03) |
| Net Cash from Investing Activities | (45.93) | (2.82) | (24.05) | (1.97) |
| Net Cash used in Financing Activities | 405.12 | 70.79 | 15.52 | 1.52 |
Financials
Key Financial Ratios
(Amount Rs. in Lakhs)
| Particulars | For the period ended | |||
| 30-Sep-23 | 31-Mar-23 | 31-Mar-22 | 31-Mar-21 | |
| Current Ratio (in times) | 1.90 | 1.35 | 1.32 | 0.95 |
| Debt Equity ratio (in times) | 0.71 | 0.44 | 0.52 | (8.45) |
| Debt Service coverage Ratio (in times) | 0.34 | 2.87 | 6.28 | (0.22) |
| Return on Equity (in %) | 19% | 144% | 205% | -663% |
| Inventory Turnover ratio (in times) | 2.30 | 6.72 | 5.76 | 1.98 |
| Trade Receivable Turnover ratio (in times) | 110.42 | 149.30 | 107.40 | 51.59 |
| Trade Payable Turnover ratio (in times) | 4.31 | 7.41 | 4.86 | 1.10 |
| Net Capital Turnover Ratio (in times) | 2.91 | 19.75 | 40.54 | (118.45) |
| Net Profit Ratio (in %) | 7.13% | 13.84% | 6.73% | -1.46% |
| Return on Capital Employed (in %) | 14.85% | 106.02% | 99.18% | -292.18% |
Key Performance Indicators
(Amounts in ₹ Lakhs)
| Key Performance Indicator | September 30, 2023 | Fiscal 2022-23 | Fiscal 2021-22 | Fiscal 2020-21 |
| Revenue from operations | 890.00 | 1478.08 | 601.29 | 95.20 |
| EBITDA | 92.85 | 285.62 | 57.96 | -0.89 |
| EBITDA Margin (%) | 10.43% | 19.32% | 9.64% | -0.93% |
| PAT | 63.48 | 204.50 | 40.48 | -1.39 |
| PAT Margin (%) | 7.13% | 13.84% | 6.73% | -1.46% |
| ROE (%) | 19.46% | 143.76% | 204.91% | -663.04% |
| ROCE (%) | 14.85% | 106.02% | 99.18% | -292.18% |
Balance Sheet
(Amt in Lakhs.)
| Particulars | As at | |||
| 30-Sep-23 | 31-Mar-23 | 31-Mar-22 | 31-Mar-21 | |
| EQUITY AND LIABILITIES | ||||
| Shareholder’s Funds | 557.98 | 244.5 | 40 | -0.48 |
| Non Current Liabilities | 27.3 | 15.13 | 15.24 | 0.94 |
| Current Liabilities | 550.71 | 335.42 | 97.28 | 38.79 |
| Total | 1,135.99 | 595.05 | 152.52 | 39.25 |
| Assets | ||||
| Non Current Assets | 92.2 | 141.45 | 23.77 | 2.28 |
| Current assets | 1043.79 | 453.6 | 128.75 | 36.97 |
| Total | 1,135.99 | 595.05 | 152.52 | 39.25 |
Profit & Loss
(Amt in Lakhs.)
| Key Performance Indicator | September 30, 2023 | Fiscal 2022-23 | Fiscal 2021-22 | Fiscal 2020-21 |
| Revenue from operations | 890.00 | 1478.08 | 601.29 | 95.20 |
| EBITDA | 92.85 | 285.62 | 57.96 | -0.89 |
| EBITDA Margin (%) | 10.43% | 19.32% | 9.64% | -0.93% |
| PAT | 63.48 | 204.50 | 40.48 | -1.39 |
| PAT Margin (%) | 7.13% | 13.84% | 6.73% | -1.46% |
Cash Flow
(₹ in Lakhs)
| Particulars | For period ended September, 2023 | For the year ended March 31, | ||
| 2023 | 2022 | 2021 | ||
| Net Cash from Operating Activities | (249.08) | (33.83) | 55.13 | (3.03) |
| Net Cash from Investing Activities | (45.93) | (2.82) | (24.05) | (1.97) |
| Net Cash used in Financing Activities | 405.12 | 70.79 | 15.52 | 1.52 |
Capital structure
(Amt in Lakhs.)
| Particulars | 31-Mar-23 |
| Borrowings | |
| Short Term Debts | 95.75 |
| Long Term Debts | 11.61 |
| Total Debt | 107.36 |
| Shareholders’ Fund (Equity) | |
| Share Capital | 1.00 |
| Reserves & Surplus as restated | 243.50 |
| Total Shareholders’ Fund (Equity) | 244.50 |
| Long Term Debt/Equity | 0.05 |
| Total Debt/Equity | 0.44 |
SWOT ANALYSIS
- Strength
- Niche Market Focus: Specialization in below-the-belt grooming for men sets the company apart in a market that has traditionally overlooked this segment.
- E-commerce Model: Operating exclusively online allows for broader market reach, reduced overhead costs, and flexibility in scaling up operations.
- Innovative Product Range: Offering specialized products tailored to unique grooming needs meets a specific demand in the market.
- Customer-Centric Approach: A strong focus on customer needs and preferences, coupled with active engagement and feedback mechanisms.
- Content and Education Strategy: Efforts to educate and change societal perceptions on male grooming help in building brand authority and trust.
- Sustainability and Ethical Practices: Commitment to eco- friendly packaging and sustainable sourcing aligns with increasing consumer consciousness about environmental and social responsibility.
- Weakness
- Limited Physical Presence: The absence of brick-and-mortar stores might limit exposure and the ability to provide tangible experiences to certain customer segments.
- Niche Market Limitations: Focusing on a niche market might limit the potential customer base and revenue streams.
- Dependency on Digital Platforms: Heavy reliance on e- commerce platforms and digital marketing makes the business susceptible to changes in digital platform algorithms and online market trends.
- Challenges in Building Trust: Selling products in a sensitive category can be challenging, especially in cultures with strong taboos or stigmas around such discussions.
- Opportunity
- Market Expansion: Potential to expand into new markets, both geographically and demographically.
- Product Line Diversification: Opportunity to broaden the product range to include complementary grooming and wellness products.
- Partnerships and Collaborations: Collaborating with influencers, health experts, and other brands can enhance visibility and credibility.
- Technological Advancements: Leveraging technology for better customer experiences, such as augmented reality (AR) for virtual product trials.
- Growing Awareness and Acceptance: Increasing societal openness to discussing and addressing male grooming needs presents an opportunity to capture a broader market.
- Threats
- Intense Competition: The grooming industry, including the niche segments, is highly competitive with new entrants and established brands.
- Changing Consumer Preferences: Rapid shifts in consumer behaviour and preferences can impact demand for specific grooming products.
- Regulatory Challenges: Facing potential regulatory changes in e-commerce and consumer goods, especially in different international markets.
- Economic Downturns: Economic uncertainties can lead to reduced consumer spending on non-essential grooming products.
IPO Details
Macobs Technologies IPO Details
| Detail | Information |
|---|---|
| Issue Type | NSE SME IPO |
| Issue Size | ₹19.46 Crore |
| Price Band | ₹71 – ₹75 per Share |
| Market Lot | 1600 Shares |
| Open Date | July 16, 2024 |
| Close Date | July 19, 2024 |
Object of the issue
| Particulars | Amount (₹ in Lakhs) |
| Customer Acquisition – Marketing & Awareness | 200.00 |
| Prepayment or repayment of a portion of certain outstanding borrowings availed by our Company | 200.00 |
| Working Capital | 1200.00 |
| General corporate purposes* | |
| Issue expenses |
Litigation involved
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