FirstCry has significantly scaled its logistics operations with RocketBees now managing 40% of online orders and Qwik expanding quick delivery services to five cities, reflecting the company’s strategic push to improve delivery speed and reduce third-party dependence, even as competitive discounting pressures margins.
- RocketBees handles 40% of shipments, up from 28% last year
- Qwik delivery service operational in 5 cities with 3-hour delivery promise
- Margins pressured by heavy discounting in diaper category and rising costs
What happened
FirstCry’s in-house delivery platform RocketBees expanded from 22 to 62 cities in Q4 FY26, now managing over 40% of the company’s online shipments, up from 28% the prior year. The company expects this share to reach nearly half of total shipments by Q1 FY27, signaling a strategic move to reduce reliance on third-party logistics providers through its asset-light, tech-enabled model.
Meanwhile, its quick delivery service Qwik, which promises delivery within three hours, moved beyond pilot stage and is active in five cities, including major metros like Bengaluru, Pune, and Hyderabad. Qwik deliveries have started constituting over 20% of online orders in select areas and are expected to reach 10% of all B2C online shipments. This expansion leverages FirstCry’s network of stores and local stockists to speed up delivery of baby care products.
Why it matters
By building strong in-house logistics capabilities, FirstCry is positioning itself to enhance customer experience through faster and more reliable delivery while capturing greater operational control and cost efficiencies. The growth of RocketBees and Qwik reflects a broader trend in India’s e-commerce market where speed and convenience are becoming critical competitive factors, especially in essential baby care segments.
However, FirstCry also faces growing pressure on profitability from intense competition, particularly in the diaper category where aggressive discounting by both quick commerce players and large horizontal e-tailers has led to a noticeable gross margin decline by 140 basis points. The company expects this discounting intensity to last several quarters and has faced additional margin erosion from currency depreciation and raw material cost inflation, costs it plans to pass on to customers.
What to watch next
Market observers will be tracking how quickly RocketBees can scale beyond 50% shipment handling and whether the company can maintain its asset-light delivery model while expanding further. Also critical will be monitoring the success and profitability of the Qwik quick delivery service as it moves past pilot stages into more cities and broader product coverage.
Additionally, the resolution of margin pressures from discounting and input cost inflation will be key to FirstCry’s financial outlook. Investors will watch the company’s pricing strategy and any shifts in competitive dynamics in the diaper and baby care segments over the coming quarters, as well as how effectively cost increases are passed to customers without hurting growth.