Crumbling under the weight of an acquisition-led strategy, growing debt, and the inability to achieve profitability, The Good Glamm Group has been pushed to the edge as lenders move to enforce claims on individual brands.
In a post on LinkedIn, founder Darpan Sanghvi took full responsibility for the company’s trajectory. “The decisions, the choices that didn’t work, the risks that didn’t pay off … this is on me.”
Once hailed as a DTC disruptor reaching Unicorn status, Sanghvi had a vision of becoming the "global, digital-first, fast-moving consumer goods (FMCG) conglomerate of the future." Fueled by over $300 million in funding, the business comprises a portfolio of innovative and fast-growing beauty and personal care brands, powered by its proprietary digital ecosystem of content and creator assets.
The company faced high costs, debt, and failed integrations, resulting in significant losses. While the failure of The Good Glamm Group certainly doesn't forebode the end of DTC in India, it does raise crucial questions about scale, sustainability, and execution.
The Good Glamm Group is a product of the DTC period, where visionary founders raised unprecedented venture funding with enticing strategies promising meteoric growth. Founded in 2017, MyGlamm started as a DTC beauty brand. In 2021, the company rebranded as The Good Glamm Group, evolving into a house of brand platform and initiating an aggressive acquisition spree, often overpaying brands that struggled to scale. The deals were to fuel a content-to-commerce model but placed significant strain on the company's finances as growth fell short of expectations.
The company's financial troubles impacted the continuity of the business, hampering cash flow and the ability to raise fresh capital. Restructuring efforts also failed due to the complex structure with multiple shareholders, and time constraints made a unified resolution possible.
Times change, and in today's environment profitability matters. Struggling to raise fresh capital even at a significantly reduced valuation, rising operational complexities and mounting debt has unravelled the conglomerate, forcing a return to standalone operations.
Sanghvi shared, "Over the past few months, we explored every possible path to keep the Good Glamm Group together as the way we had envisioned: a digital FMCG conglomerate with multiple brands under one umbrella. We explored refinancing, particular brands' sales, strategic investments, and more. We left no stone unturned. But when you operate in a complex structure with multiple stakeholders, and time is your enemy, sometimes it just does not come together."
He continued, "The business reached a turning point in restructuring efforts as lenders have decided to enforce their charge on the individual brands, making a group-wide solution no longer viable. The brands will be sold off as separate assets and will operate individually, rather than under The Good Glamm Group umbrella."
The Time Line
2019: In July 2019, MyGlamm raised $14.47 million at a $72.35 million valuation.
2020: In July, the business 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.
The brand opened a 3,000-square-foot interactive flagship that is six times larger than the average Indian beauty store.
2021: MyGlamm rebranded as The Good Glamm Group, reached unicorn status, and initiates an acquisition spree in support of its house of brands content-to-commerce strategy.
In April 2021, the group acquired India's largest parenting platform BabyChakra for an undisclosed sum. Naiyya Saggi, founder and CEO of BabyChakra, joined MyGlamm as co-founder and President, charged with leading the mom-baby vertical and building the community vertical for the group.
In August 2021, it closed a $71 million Series C funding round with a top-up of $47.5 million to the existing $23.5 million it had closed in March.
In November 2021, the company snapped up Indian digital and media platform ScoopWhoop and raised $150 million in its Series D financing round led by Prosus Ventures and Warburg Pincus. This funding round valued the business at $1.2 billion post-money, a 12x surge in its valuation. Investors included L'Occitane, Bessemer Venture Partners, Amazon, Ascent Capital, and the Mankekar Family Office, as well as $15 million of venture debt from Alteria Capital.
In December 2021, The Good Glamm Group acquired MissMalini Entertainment in a stock-cash mix transaction and invested Rs 100 crore ($13.5 million) in Sirona Hygiene.
2022: In January it acquired a majority stake in Organic Harvest in an all-cash deal. The Group also acquired influencer marketing platform Winkl and content and creator analytics start-up Vidooly, adding the businesses to its broader beauty and personal care portfolio.
In December 2022, The Good Glamm Group took a 51% stake in digital media company Tweak India in a cash and stock deal that turbocharged the group's DTC capabilities.
2023: The brand was on the BeautyMatter inaugural FUTURE50 list and projected annual revenue for 2023 to be $250 million to $300 million.
In March 2023, it increased its stake in The Moms Co. from 75% to 90%.
2024: Raised $30 million bridge round at a flat valuation of $1.25 million from existing investors, including Warburg Pincus, Prosus Ventures, Bessemer, and Accel, aimed at meeting working capital requirements, followed by $10.7 million from Amazon and L'Occitane in April.
In April, Wyn Beauty, a joint venture partnership with The Good Glamm Group and tennis great Serena Williams, launched exclusively with Ulta Beauty.
In October, it completed the 100% acquisition of Sirona Hygiene for Rs 450 crore ($60 million) in an all-cash deal.
In mid-2024, the business was hit by an exodus of leadership. The Good Glamm Group co-founders, Priyanka Gill and Naiyya Saggi, left to pursue other ventures. Chief Executive Sukhleen Aneja moved to Nykaa as Senior Vice President and business head for Kay Beauty, the celebrity beauty brand launched in partnership with actress Katrina Kaif. Kartik Rao, Chief People Officer and Senior Vice President-Founder Initiatives, left for Vahan.ai.
2025: Boardroom turbulence followed, with representatives from Accel, Prosus Ventures, and Bessemer departing in January 2025.
In February, after default notices and delayed payments, the feminine hygien brand Sirona was sold back to its founders for about Rs 150 crore ($18 million), well below the Rs 450 crore ($52 million) it paid for the business.
It also offloaded digital media firm ScoopWhoop to meme marketing agency WLDD for around 18-20 crore ($2 million-$ 2.3 million), about a fifth of its 2021 acquisition cost.
The group began missing salary payments for April and May and defaulted on dues to vendors and former employees.
In April, it sold social media and influencer talent agency MissMalani Entertainment to marketing firm Creativefuel.
The remaining brands in the portfolio are The Moms Co., Organic Harvest, and POPxo, are also on the block.
The Founder's Promise
Speaking of employees, vendors, partners, lenders, and shareholders Sanghvi said, "I understand, just saying 'I'm sorry' is not enough. I take responsibility, and responsibility is not just reflection; it has to be about commitment. And that is where I am now."
In a personal commitment, Sanghvi pledged 25% of his future post‑tax salary and equity gains toward settling any unpaid employee dues if brand‑sales proceeds fall short. He also plans to establish a Good Glamm Restitution Fund within 60 days, financed by equity in his future ventures, to compensate vendors and shareholders.
To shareholders, Sanghvi said, "You backed an ambitious vision. You believed in my ability to scale, to disrupt, to lead. Your support gave me the wings to fly fast and the courage to take big swings. However, I let you down. There’s no other way to say it, and I won’t try."
He said the last few weeks have been extremely difficult and at times dark. "But what has gotten me through this period is knowing that it is my responsibility to find a way for you to get back the faith and money you placed in us. It is not a burden; it is a responsibility and a motivation," he told the shareholders.
In his advice to fellow entrepreneurs, Sanghvi said he still believes there’s no greater dream than entrepreneurship, even with all the pain it can bring when things fall apart. "We don’t talk enough about what happens when things don’t go to plan. When the hype fades. When ambition outruns execution. When real people get hurt. Failure can haunt you ... maybe it’s time we created more space for these conversations—to learn, to grow, to support one another."
