US-based investor Bessemer Venture Partners (BVP) was one of India’s active early-stage investors until 2017, with over two dozen investments. Known for its Indian bets on unicorns such as Swiggy and Bigbasket, BVP has led a Rs 100 crore ($14.47 million) round in beauty brand MyGlamm, making its first investment in the Indian market in over a year.
WHO: Mumbai-based MyGlamm, run by Sanghvi Technologies Pvt. Ltd, was founded in April 2015 by Darpan Sanghvi. The company launched by offering on-demand beauty services, but changed to create a line of beauty products in 2017. The current business is a beauty products marketplace primarily focused on color cosmetics and betting on celebrity collaborations. Currently they have deals with Manish Malhotra, Daniel Bauer, Sidharth Malhotra, and more. The business also partners with offline retail stores such as Lifestyle and Shoppers Stop.
WHY: The funds will be used for international expansion with plans to launch in the Middle East and Southeast Asia this year.
IN THEIR OWN WORDS: “We believe that there is a complete dearth of beauty brands in India and the new millennial customer is looking to discover her brand online and on social media,” said Darpan Sanghvi, founder, MyGlamm.
“Globally, a large number of businesses are going to direct-to-consumer, for which the biggest reason is to establish a connect with users to get feedback, serve them better and giving the best experience. Beauty is a very content driven category and having an omni-channel approach is the best,” said Vishal Gupta, MD, Bessemer Venture Partners.
- MyGlamm is now valued at $72.35MM (Rs 500 crore).
- Bessemer Venture Partners and the Mankekar family office led the Rs 100 crore ($14.47 million) round with participation from existing investor L’Occitane.
- Early investor Tano Capital will be selling most of its stake for Rs 30 crore making a 3x return on their investment.
- The company has an Rs 60 crore annual run rate, with customer retention rates of over 50%.
- Prior to this round, the company raised $11.3MM. It last raised Rs 35 crore from L’Occitane in March 2017 with participation from Brand Capital, when it used to be an on-demand beauty services provider. Prior to that it had raised $6 million in 2016, where Asia-focused private equity investor Tano Capital had also participated.
- Bessemer MD Vishal Gupta will be joining the board of MyGlamm.
- MyGlamm raised $6 million in Series A funding from L’Occitane International, Tano Capital, and Brand Capital in 2016. Sanghvi Brands, a sister company, is the franchisee of L’Occitane Spa in India. Tano invested Rs 62 crore in Sanghvi Brands in 2014.
Photo: Via MyGlamm