At the FirstCry listing ceremony, Anand Mahindra, Chairperson of Mahindra & Mahindra, unveiled the strategic rationale behind the conglomerate’s landmark investment in the rapidly growing ecommerce platform. This investment, he revealed, was more than a financial commitment, it represented a bold experiment in understanding how colossal organisations can effectively incubate and nurture new ventures.
In a candid address, Mahindra described the initiative as a ‘management experiment’ — a deliberate attempt to explore how large business groups, traditionally seen as cumbersome giants, could embrace and drive the entrepreneurial spirit characteristic of startups. “I’m here because it’s a moment of great pride for the entire Mahindra group,” Mahindra explained, reflecting on the significance of the investment. “This stake is not just about numbers, it’s about the story behind it.”
The roots of this experiment date back to 2010, the same year FirstCry was established. At that time, Mahindra & Mahindra founded Mahindra Partners, an entity designed to foster a startup-like mentality within a massive corporate structure. This new division was charged with investing in and incubating companies, particularly those in emerging sectors, while competing with nimble startups. “The investment in FirstCry was part of a lab experiment in management, aimed at understanding how large business groups can incubate and build new businesses,” Mahindra noted.
Mahindra Partners, spearheaded by Zhooben Bhiwandiwala and Parag Shah, was tasked with isolating the unique, agile mindset of startups. “To our minds, the really differentiating mentality of startups is that they worship at the temple of value creation,” Mahindra remarked. This focus on creating value, rather than building empires, became the cornerstone of their approach.
The results were compelling. Mahindra Partners successfully spun off Mahindra Logistics, dramatically expanding its reach and impact. They also established Mahindra Susten, a leading player in the renewable energy sector, and transformed Mahindra Accelo from a trading entity into a robust manufacturing powerhouse. “We successfully spun off Mahindra Logistics, grew Mahindra Susten in renewables, and transformed Mahindra Accelo into a manufacturing powerhouse,” Mahindra detailed.
The investment in Mom & Me, a business focused on baby products, was initially positioned as a competitor to FirstCry. However, recognizing the exceptional capabilities of Supam Mahindra, FirstCry’s visionary leader, Mahindra Partners decided that collaboration would be more advantageous than competition. “After evaluating Supam Mahindra’s brilliance and efficiency, we decided that merging with FirstCry would create greater value than competing with them,” Mahindra said.
The merger with FirstCry not only made Mahindra & Mahindra the largest shareholder in the company but also positioned FirstCry for rapid expansion. Supam Mahindra’s leadership propelled FirstCry to unprecedented success, culminating in a substantial investment from SoftBank. “Supam Mahindra’s leadership propelled FirstCry to remarkable success, which attracted SoftBank and validated our strategy of investing in and supporting innovative leaders,” Mahindra concluded.
By merging traditional corporate strength with startup agility, Mahindra & Mahindra has set a precedent for how large enterprises can successfully navigate and contribute to the evolving business landscape.
