Content-to-commerce conglomerate Good Glamm Group furthered its ambition of becoming India's largest CPG company by building a "digital Unilever" with an additional $150 million in funding at a $1.2 billion valuation.
WHO: Founded in 2017 by Darpan Sanghvi, MyGlamm is an omnichannel beauty brand offering a range of more than 800 cruelty-free and vegan products across makeup, skincare, and personal care. While it is digital first, MyGlamm also has over 10,000 offline points of sales across 70 cities in India. Last year the brand opened a 3,000-sq-ft interactive flagship that is six times larger than the average Indian beauty store.
Last month, the Mumbai-headquartered start-up announced the formation of Good Glamm Group, which will act as the umbrella company for MyGlamm and its portfolio of brands. The group has more than 4 million customers and is available at over 20,000 digital and physical points of sale across India, acquiring 350,000 new customers every month on average.
WHY: The capital will be used to invest in product development, support data science and technology research, increase offline expansion, and fund working capital requirements while also expanding the content creation capabilities and digital reach of POPxo, Plixxo, BabyChakra, and ScoopWhoop. The Group will also continue to make investments in more beauty and personal care brands and has plans for international expansion in 2022.
IN THEIR OWN WORDS: "Entering the Unicorn Club marks Day 1 for all of us at the Good Glamm Group. And we couldn't be more excited and privileged to embark on the journey from 1 to 10, with Prosus and Warburg, who bring incredible strength and experience to our company," Darpan Sanghvi, group founder and CEO, Good Glamm Group, said.
"Being part of Good Glamm Group is a dream opportunity and a privilege as we become India's largest DTC beauty and personal care company. Now with Prosus Ventures and Warburg Pincus as our investors and partners we are perfectly positioned to scale even faster and fulfill our mission," Priyanka Gill, co-founder, Good Glamm Group, added on the new round of funding.
"We are very excited to partner with the Good Glamm Group to disrupt the beauty and personal care industry and this marks our first investment in the DTC category. The Good Glamm team has paired desirable, homegrown brands with compelling content, building an incredibly engaged community and positioning them well for future growth in India and beyond," said Ashutosh Sharma, head of Investments India at Prosus Ventures, in a statement.
"With a strong portfolio of D2C brands and proprietary content assets, the group is well positioned to scale rapidly and create a large digital-first business in the beauty and personal care space," said Vishal Mahadevia, Managing Director and India Head at Warburg Pincus, in a statement.
- The Good Glamm Group has raised $150 million in its Series D financing round led by Prosus Ventures and Warburg Pincus. L'Occitane, Bessemer Venture Partners, Amazon, Ascent Capital, and the Mankekar Family Office, as well as $15 million of venture debt from Alteria Capital.
- Prosus Ventures and Warburg Pincus invested $65 million each while early backers such as Chiratae Ventures (formerly IDG Ventures India) are partially cashing out. The company also sold secondary shares worth $10 million during the funding round.
- The company said it has an annualized revenue run rate of $120 million, and they expect to close the financial year ending March 31, 2022, at $250 million in revenue.
- The start-up has achieved EBIDTA break-even and the new capital will serve as a war chest as it scales.
- The company has spent about $270 million in equity and cash in recent months to buy a number of businesses that fit with the start-up's vision and is finalizing talks to acquire another four brands that it expects to close by the end of this year.
FUNDING AND ACQUISITIONS:
- This funding round values the business at $1.2 billion post-money, a 12x surge in its valuation from $100 million in March this year and at $300 million in July, when it extended and closed its $71 series C.
- In April 2021, MyGlamm acquired India's largest parenting platform BabyChakra for an undisclosed sum. Naiyya Saggi, founder and CEO of BabyChakra, will join MyGlamm as co-founder and President, charged with leading the Mom-Baby vertical and building the community vertical for the group.
- In July 2020, MyGlamm acquired POPxo-Plixxo, making MyGlamm-POPxo-Plixxo the largest content-community-commerce platform in India with 88 million annual female users, 1.5 billion annual video views, and 150,000 influencers onboarded.
- In July 2019, MyGlamm raised $14.47 million at a $72.35 million valuation.
- Bessemer Venture Partners and the Mankekar family office led the Rs 100 crore ($14.47 million) round with participation from existing investor L'Occitane.
- 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 raised $6 million in 2016, where Asia-focused private equity investor Tano Capital 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.
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