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India's Good Glamm Group Acquires Organic Harvest

January 26, 2022
January 26, 2022
Organic Harvest

The Good Glamm Group makes its seventh acquisition in the last 12 months and marks its entry into the organic beauty and personal care space.

WHO: Founded in 2013 by Rahul Agarwal, Organic Harvest is an organic brand with skincare, haircare, body care, and essential oils. All formulas contain plant-based ingredients and raw materials certified by global organizations such as Ecocert. The business is available in 25,000 points of sales across India and seven other countries.

The Mumbai-headquartered start-up Good Glamm Group is 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. The Good Glamm Group is valued at over $1.2 billion and is backed by marquee investors. Their portfolio consists of MyGlamm, POPxo, ScoopWhoop, BabyChakra, Plixxo, Sirona Hygiene, MissMalini, Winkl, and Vidooly.

WHY: Organic Harvest will be able to leverage The Good Glamm Group's content-to-commerce playbook and its influencer network. The deal will help Good Glamm Group grow offline; together they will have 50,000 points of sales and expand in overseas markets.

IN THEIR OWN WORDS: Darpan Sanghvi, founder and CEO of The Good Glamm Group said in a statement, "Organic Harvest has predominantly been an offline first brand. Now, as part of The Good Glamm Group, Organic Harvest will be able to leverage the group's large digital audience, Organic Harvest will have access to data-driven insights from the group's content platforms into what consumers are looking for along with a strategic approach towards influencer marketing."

"With the movement towards clean beauty, organic is going to be the next trend in India," Sanghvi said to Business of Fashion, adding that their goal is to grow Organic Harvest from $10 million in annual revenue to $100 million within three years.

Rahul Agarwal, CEO of Organic Harvest, added, "The Good Glamm Group-Organic Harvest partnership came about on a shared vision to leverage content-to-commerce to exponentially grow the organic BPC (beauty and personal care) category. Organic Harvest has a current revenue run rate of Rs 75 crore and is targeting a revenue run rate of Rs 250 crore by March 2023."

DETAILS:

  • The Good Glamm Group has acquired a majority stake in Organic Harvest in an all-cash deal. Financial details of the deal were not disclosed.
  • The Economic Times reported the business was valued at around 4-4.5 times its annualized revenue run rate.
  • Organic Harvest founder and Chief Executive Rahul Agarwal has become a shareholder in The Good Glamm Group, investing in his personal capacity, and over the next three years will swap his remaining equity into the group.
  • Good Glamm plans to invest an additional Rs 75 crore ($10 million) to fuel growth.
  • The company has a current revenue run rate of Rs 75 crore ($10 million) and is targeting a revenue run rate of Rs 250 crore ($33.4 million) by March 2023.
  • Organic Harvest, which was bootstrapped until this investment, is Good Glamm Group's first offline acquisition.
  • Organic Harvest will continue to work as an independent entity, and its 700 employees have been absorbed into the company.
  • In January 2022, The Good Glamm Group acquired influencer marketing platform Winkl and content and creator analytics start-up Vidooly.
  • 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 last November.
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