The funding round catapults the consumer brand firm into an ever-growing tribe of Indian unicorns, which are privately held startups with a valuation of $1 billion or more.
Good Glamm, the parent of brands like MyGlamm, BabyChakra, PopXo and Scoopwhoop, will be valued at $1.2 billion post-money, a senior company executive told ET.
This makes it the second company in the buzzy D2C space to reach the $1 billion valuation mark after Licious, which raised $52 million in a round led by IIFL’s Late Stage Tech Fund and Avendus last month, valuing the meats and seafood company at $1.05 billion after the funding.
ET was the
first to report about Good Glamm being in talks for a funding round on October 20.
The fundraise includes $15 million of venture debt from Alteria Capital, Good Glamm’s cofounder and CEO, Darpan Sanghvi, told ET. Other existing investors such as French beauty brand L’Occitane, Bessemer Venture Partners, Amazon, Ascent Capital and the Mankekar Family Office have also participated in the latest financing round.
With Prosus and Warburg Pincus pumping in $65 million each, early backers such as Chiratae Ventures (formerly IDG Ventures India) are partially cashing out.
“Some early investors who were on the PopXO capitalisation table and had joined Good Glamm as part of the acquisition last year will also exit through this funding round,” Sanghvi told ET. The secondary transaction is expected to be around $5 million, he added.
In September, Good Glamm closed its
extended Series C round after it raised $100 million in total from investors led by venture capital fund Accel.
“So far, we have executed M&A deals worth Rs 2,000 crore, spending almost Rs 750 crore in cash,” Sanghvi said, adding: “We will acquire two more brands by end of the calendar year and then focus on growing each line of business.”
These include product development, data science and technology research to increase offline expansion. The proceeds will also be used to fund working capital requirements, and expand the content creation capabilities and digital reach of PopXo, BabyChakra and ScoopWhoop. The group will continue to make investments in more beauty and personal care brands, Sanghvi said.
Good Glamm, previously MyGlamm, has been rolling up smaller brands into its fold and intends to grow them separately through the content-to-commerce playbook it follows. The company is clocking an annualised revenue run rate of $120 million.
“We are expected to close the financial year ending March 31, 2022, at $250 million in revenues,” Sanghvi said.
Revenue run rate is a way of projecting upcoming revenue based on previously earned revenue.
“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,” said Ashutosh Sharma, head of investments, India, at Prosus Ventures.
The festive season helped the company grow its offline business 100% year-on-year. Offline contributes around 25% to the revenue. Its online business also doubled on year. While the flagship brand, MyGlamm, brought in $62 million, acquisitions such as PopXO, BabyChakra, Mom’s Co and Scoopwhoop accounted for the rest.
“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.
New-age, digital-first personal care and beauty brands such as Purplle, Sugar Cosmetics, Mamaearth and Plum Cosmetics have attracted the interest of risk investors while the largest player – Nykaa – is
expected to debut on the Indian public market on November 10.
Nykaa raised Rs 5,352 crore from its primary stake sale with the issue getting subscribed 82 times. The pandemic has boosted the business of online-led brands as it has hastened digital adoption by consumers and led them to increasingly buy these products.
