The Good Glamm Group acquires The Moms Co in Rs 500-crore deal

Image: MyGlamm.com

The newly formed Good Glamm Group has acquired direct-to-consumer (D2C) platform The Moms Co in the largest-ever D2C transaction in the country, the company informed on October 6. According to sources, the deal is valued at Rs 500 crore, though the founders did not confirm the value of the transaction.

“The Moms Co is one of the best scaled D2C brands in India and they have achieved a revenue run rate of Rs 150 crore in just four and a half years. Also, the company derives about 50 percent of its revenue from skincare, which is a very important category for us,” Darpan Sanghvi, group founder and CEO, The Good Glamm Group, told Moneycontrol.

“The company is the right fit for us as it gives us an entry into skincare, strengthens our mom and baby segment, and allows a strong and fast-growing 'moms' brand to be a part of the portfolio,” he added.

This is the company’s first acquisition after unveiling The Good Glamm Group and consolidating all its businesses — MyGlamm, POPxo and BabyChakra — under one umbrella last week. The company had also announced plans to acquire six brands in the beauty and personal care space with the setting up of the group and has set aside Rs 750 crore for the purpose.

Ambitious revenue targets

After completion of the acquisition, New Delhi-based The Moms Co is targeting a revenue of Rs 500 crore in the next two years. According to the company, the founders Malika Sadani and Mohit Sadaani will work closely with Naiyya Saggi and Priyanka Gill, co-founders of Good Glamm Group to accelerate The Moms Co.'s presence globally.

“In the last four and a half years, we have worked with over 2 million moms and been a part of their journey. We have always been led by content and formed a community of moms. And hence, now joining The Good Glamm Group will help us further leverage this opportunity,” said Malika Sadani, founder and CEO, The Moms Co.

Under the group, the brand will be able to leverage a large digital audience of over 100 million users across POPxo and BabyChakra, over 220,000 Plixxo influencers and BabyChakra’s 10,000 doctors network. The company also plans to expand its presence from 1500 retail touch points to over 20,000 by tapping The Good Glamm Group’s retail network.

The Moms Co was established in 2017 to address a huge gap of toxin-free products in the Indian market for prenatal and postnatal consumption, and baby care.

Gearing up for IPO

MyGlamm started 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 company now plans to acquire five more companies in the D2C segment and achieve a revenue run rate of over Rs 1,800 crore by the end of FY22. The company, claim founders, currently has a revenue run rate of $100 million (about Rs 740 crore.)

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,” Sanghvi told Moneycontrol in an earlier conversation.

It will be among a slew of new-age firms 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.

The company had last week 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.