With ScoopWhoop and POPxo in its kitty, here’s what MyGlamm intends to do
- Acquisition of POPxo and ScoopWhoop may help the Good Glamm Group save millions on marketing annually.
- The Good Glamm Group is a culmination of three brands MyGlamm, POPxo and BabyChakra, and its plans to acquire up to 4 more businesses by March 2022.
- The root of these entities lies in the content-to-commerce strategy, which will lead them to joining forces to help each other and build a bigger platform.
The latest one to be acquired is the well-known digital media brand ScoopWhoop, which claims to have over 100 million users on its platform. The company will become a subsidiary of the Good Glamm Group, along with another digital media brand POPxo that was acquired in August 2020.
Now the question arises -- What would a beauty and cosmetics brand do with digital media platforms like ScoopWhoop and POPxo? Well, POPxo at least tried its hand in an ecommerce play before getting acquired, but ScoopWhoop had nothing to do with it.
AdvertisementPOPxo, ScoopWhoop will have a direct impact on MyGlamm’s financial statement
Since last year — even before Good Glamm Group came into existence — MyGlamm had been boasting about its content-to-commerce playbook.
The thought behind the strategy is simple -- you acquire a digital media company that has a substantial number of users and that will set the wheels rolling for your marketing. In turn, you save money on advertising and hope to get better recognition for your brand.
MyGlamm’s founder and chief executive Darshan Sanghvi — while announcing the acquisition of POPxo and its influencer marketing platform Plixxo in August 2020 — had specified that the acquisition of POPxo alone would help the company save $4-5 million in marketing costs annually.
POPxo, then, had less than half the user ScoopWhoop has at the moment.
MyGlamm spent 11% more than of its revenue on marketing and advertising spends in the financial year 2020, as per data sourced from its financial statement. Losses were at ₹68 crore.
But there is much more to it than just saving a few marketing dollars
AdvertisementThe Good Glamm Group — which came into existence only last month — is a culmination of three brands MyGlamm, POPxo and online parenting startup BabyChakra. The parent entity is also led by the founders of these three companies — Darshan Sanghvi, Priyanka Gill (POPxo) and Naiyya Saggi (BabyChakra).
“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,” BabyChakra’s Saggi had told Business Insider in a previous conversation.
The three businesses themselves claim to have benefited from joining their forces.
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 (acquired in September 2021)||20 million mothers on platform||Aims to onboard 75 million mothers by 2022|
AdvertisementThe group had acquired The Moms Co earlier this month as a part of the same strategy. The Good Glamm Group has a war chest of $100 million to make upto four more acquisitions by March 2022.
“This large user base and reach [of ScoopWhoop and POPxo], along with the [Good Glamm] Group’s proven digital and go-to-market omni channel capabilities, and its capacity to derive data-driven insights into what consumers want will help all brands in the Group to successfully create, launch and market products in the beauty, skincare, personal care, male grooming and parenting categories,” the Good Glamm Group said in its latest press note dated October 20.
POPxo’s Gill and BabyChakra’s Saggi being the brain behind the idea of setting up Good Glamm Group, joined MyGlamm’s Sanghvi at the parent entity. The same would not be true for other companies. Each of the acquired companies, including Scoopwhoop and The Moms Co, will continue to be operational independently and being led by their current leadership.
AdvertisementThe company seems confident in this strategy that it has already made plans to hit the public market by 2023.
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