MyGlamm has 30,000 points of sale and about 800 stock keeping units. [Representative image]
With the ambitious mission of becoming the country’s largest digital consumer packaged goods (CPG) company, direct-to-consumer brand MyGlamm has set up The Good Glamm Group, consolidating all its businesses — MyGlamm, POPxo and BabyChakra — under one umbrella. The newly set up group is now scouting for acquisitions in the beauty and personal care segment and has set aside Rs 750 crore for the purpose.
“We plan to acquire four-six brands in the beauty and personal care space before March,” Darpan Sanghvi, group founder and CEO, The Good Glamm Group, told Moneycontrol.
The company has also topped up its series C round with an additional Rs 255 crore led by Trifecta Capital. It had raised Rs 175 crore in March and then another Rs 355 crore in July in a round led by Accel as part of its Series C funding. Most of the funds raised in the recent round will go towards acquiring new brands.
According to Sanghvi, the company also has plans to go public and is eying an initial public offering (IPO) by 2023.
Building a ‘digital’ Unilever
MyGlamm started out in 2017 as a direct-to-consumer platform. It went on to acquire startups such as women-centric content platform POPxo in 2020 and parenting platform BabyChakra last month. The newly formed group now plans to tap the resources of these three companies together to acquire and power the journey of several other brands.
“In this journey of building the group, we realised that we have a few incredible growth engines. We have access to 88 million female users through POPxo and 20 million mothers through BabyChakra and then we have MyGlamm’s expertise in building products and driving distribution,” said Sanghvi.
“We are beauty and personal care domain experts and are trying to build a digital Unilever,” he added.
According to a report by Avendus Capital released last year, beauty and personal care will be a $30 billion market by 2025, of which digital-first brands could have a $10-15 billion share.
MyGlamm plans to acquire new companies, propel their growth and create a conglomerate of digital personal care brands. [Image: MyGlamm.com]Riding on content
By tapping POPxo’s content expertise, said Sanghvi, The Good Glamm Group now acquires 3,50,000 new users a month as opposed to 30,000 new customers a year ago. The company, he said, is also operating out of 30,000 points of sale and has about 800 stock keeping units (SKUs).
“By tapping our content-to-commerce strategy, we can help create and also accelerate the journey of several other brands,” said Priyanka Gill, co-founder, The Good Glamm Group.
The founders of the company are confident that they can replicate this journey for other brands that they bring under the group umbrella and increase revenue by two-three times in a span of months.
Most D2C founders today, added co-founder Naiyya Saggi, are trying to create trust in their brands through content and community and on this front The Good Glamm Group has already built a funnel that leads with content and not transactions.
As part of its strategy, the company now plans to acquire new companies, propel their growth and create a conglomerate of digital personal care brands.
The company is looking for brands in sub-categories such as skincare, haircare, hygiene, bath and body, organic or natural etc, with a revenue of at least Rs 50-150 crore. It is already in talks with several companies for acquisitions, said Sanghvi.
The Good Glamm Group, the founders said, currently has a revenue run rate of $100 million (about Rs 740 crore) and is targeting $250 million (Rs 1,850 crore) by March.
After building its digital house of brands, the company will push for an IPO in the next two years. “We are hoping that we will be listed in 2023 as the first digital CPG company in India,” said Sanghvi.
The company will be among a slew of new-age companies planning to go public after food aggregator Zomato’s blockbuster listing earlier this year. Policy Bazaar, Nykaa, Paytm and Delhivery are among the companies that plan to go public this year, while several others, including Byju’s and Snapdeal, have expressed similar intentions.
The Good Glamm Group, however, is the first D2C company from the start-up segment aiming to go public.