MyGlamm has set aside $100 million to acquire 6 beauty and personal care brands under new entity
The Good Glamm Group
- Myglamm has set up a new parent entity ‘The Good Glamm Group’ to acquire 6 beauty and personal care businesses by March 2022.
- The company has raised $34 million in a mix of debt and equity, which takes its war chest to $100 million to make acquisitions.
- MyGlamm’s Darpan Sanghvi revealed that they are on a lookout for Indian brands that have a revenue of ₹50 crore to ₹200 crore.
- Each of these acquired companies will continue to operate as individual entities, with access to other resources from other plugs of the group entity.
AdvertisementDirect-to-consumer (D2C) cosmetics brand MyGlamm has announced the formation of a new parent entity ‘The Good Glamm Group’ in order to create a digital house of brands in the beauty and personal care space.
As a part of the plan, the company said it will acquire 4 to 6 businesses in this space in the next 90-180 days. It has a war chest of ₹750 crore ($100 million) to make these strategic investments in beauty and personal care brands. The capital will be deployed by March 2022.
The Mumbai-based cosmetics company had previously acquired digital media/e-commerce platform POPxo and online parenting startup BabyChakra over the last eighteen months. The founders of both the companies — Priyanka Gill (POPxo) and Naiyya Saggi (BabyChakra) — had joined Darpan Sanghvi as cofounders at MyGlamm. The trio will be leading the latest entity, which plans to go public in the next two years.
In order to fund their aggressive acquisition plans, the Good Glamm Group has raised ₹255 crore (about $34.5 million) — ₹100 crore in equity and ₹155 crore in venture debt — from Trifecta Leaders and Stride Ventures. The company is also backed by Amazon, Accel, L’Occitane, Chiratae and others.
In a conversation with Business Insider, MyGlamm’s Sanghvi revealed that they are on the lookout for Indian brands that have a revenue of ₹50 crore to ₹200 crore.
This acquisition is more like an alliance
Each of these acquired companies will continue to operate as individual entities, which said it will give access to 88 million users of POPxo, 20 million moms on BabyChakra and MyGlamm’s 20,000 point of sales offline, which will grow to a 30,000 by December. Besides this, these brands will also get access to the user base of other platforms that are acquired by the Good Glamm Group in the future.
“So, imagine you're a D2C entrepreneur who's built out of a very strong, robust brand on marketplaces right now. The next level of growth will typically come from you having the access to data that you need for marketing bulk. If you want to reach out to a very very large audience of women. In this case, the POPxo and the BabyChakra sort of stack can add value,” Saggi, co-founder of the Good Glamm Group and BabyChakra added.
The three businesses — MyGlamm, POPxo and BabyChakra — have claimed that their individual businesses have also grown after their partnership. Notably, MyGlamm acquired POPxo in September 2020 and BabyChakra in August 2021.
Source: The Good Glamm Group
|Company||September 2020||August 2021|
|MyGlamm||30,000 new customers per month||350,000 new customers per month|
|POPxo||48 million monthly active users||60 million monthly active users|
|Plixxo||125,000 influencers on platform||220,000 influencers on the platform|
|BabyChakra||20 million mothers on platform||Aims to onboard 75 million months by 2022|
“The Good Glamm Group is a house of brands where we plug in interesting brands, they continue on their own journey and they get support from group resources,” Gill, co-founder of MyGlamm and POPxo added. The company will soon launch its range of cosmetics, under the MyGlamm brand.
India's beauty and personal care segment amounts to $26.8 million
According to a Statista report, India’s beauty and personal care market amounts to $26.8 billion in 2021 and it is expected to grow annually at 8.51% compound annual growth rate (CAGR) for the next four years. The biggest segment in this industry is personal care, with a volume of $12.2 billion this year.
The report further notes that about 13% of total revenue in the beauty and personal care segment would come from online sales by 2021.
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