The transaction pegs Organic Harvest’s enterprise valuation at Rs 275-Rs 280 crore, as per a source with knowledge of the development. Good Glamm, a direct-to-consumer beauty and personal care brand, did not disclose the financial details of the deal. The source told ET that Organic Harvest has been valued at around 4-4.5 times its annualised revenue run rate.
Good Glamm will further invest Rs 75 crore as primary capital in Organic Harvest to fuel its growth plans, a senior company executive said.
This is Good Glamm’s seventh acquisition in the last 12 months and marks its entry into the organic beauty and personal care space. Organic Harvest, which was bootstrapped till date, is Good Glamm’s first offline acquisition.
“Together, we will now have around 50,000 points of sales and Organic Harvest will help Good Glamm expand to the overseas markets,” said Darpan Sanghvi, founder and chief executive of The Good Glamm Group.
Organic Harvest has a current revenue run rate of Rs 75 crore, which is likely to grow to Rs 250 crore over the next 15 months, he said. “We plan to invest another Rs 75-Rs 100 crore, depending on the growth requirement in Organic Harvest over the next 15-18 months.”
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Founded in 2013 by Rahul Agarwal, Organic Harvest is an all-organic brand with skincare, haircare, body care range and essential oils, made from plant-based ingredients and raw materials certified by global organisations such as Ecocert. It has grown chiefly as an offline channel with 25,000 points of sales across India and seven other countries.
“For us, it was always about taking the concept of organic personal care products to the substantial mass population of India and across the globe. With this partnership, our aspiration to become the world’s largest organic personal care company, seems to be easily achievable,” Agarwal, also the chief executive of Organic Harvest, said.
Organic Harvest will be able to leverage the Good Glamm Group’s content to commerce playbook and its influencer network. It will also look to accelerate the creation, launch and marketing of products across skin and personal care, Sanghvi said.
“In return, Agarwal has invested in his personal capacity in The Good Glamm Group and over the next three years will swap his remaining equity into the group,” he said.
Valued at over $1.2 billion, The Good Glamm Group is backed by investors such as Warburg Pincus, Prosus Ventures, L’Occitane, Bessemer Venture Partners, Accel, and Amazon, among others. Founded by Sanghvi, Priyanka Gill and Naiyya Saggi, it has brands such as MyGlamm, The Moms Co, St Botanica, Sirona and Organic Harvest as well as content platforms POPxo, ScoopWhoop and BabyChakra, under its umbrella. Good Glamm has invested in the Good Creator Co, formed by spinning off its influencer companies, Plixxo, MissMalini, Winkl and Vidooly.
