In the face of increasing competition in the direct-to-consumer sector, content-to-commerce firm the Good Glamm Group has acquired a 51 percent stake in Twinkle Khanna's digital media company Tweak India in a cash and stock deal.
The company did not disclose the value of the transaction.
The conglomerate, led by Darpan Sanghvi, has been building a house of brands through acquisitions over the last two years. With this latest acquisition, the conglomerate has so far acquired 12 companies and raised $250 million in the last year.
The Good Glamm Group consists of a portfolio of beauty and personal care brands with a digital ecosystem comprised of content, community, and creator assets.
The most recent acquisition Tweak India, a new-age digital media company founded by celebrity and author Twinkle Khanna, has content centred on women in formats such as video and events, among others.
“This acquisition will help us optimise each other’s strengths. We would like to grow our revenue and also expand all our verticals. We want to focus and penetrate into the Hindi market. These are the next immediate goals,” Khanna told Moneycontrol.
Tweak India plans to expand its vernacular capabilities in order to serve the market in smaller towns and cities. Khanna added that the company will also prioritise its videos.
She will continue to serve as CEO and will become a shareholder in the Good Glamm Group.
Tweak India, which claims to be profitable, has approximately 6 million monthly active users (MAUs) and 15 million monthly impressions. Tweak India, based in Mumbai, will operate under Good Media Co, led by Priyanka Gill, co-founder of the Good Glamm Group and CEO of Good Media Co.
Currently, the parent group is organised into three divisions: Good Brands Co, which houses all of its direct-to-consumer beauty and personal care brands; Good Media Co, which houses all of its digital media brands; and influencer platform Good Creator Co.
Commenting on the content-to-commerce strategy, Gill stated, “Content-to-commerce is the way how long-term brands will be built. It builds a long-term relationship with the customer and because of the trust, they then buy our recommended products. This experiment has been very successful for us and these platforms are the flywheels through which we drive the business.”
She added that through these acquisitions, MyGlamm has been able to significantly reduce its customer acquisition costs, which has been a major challenge for D2C brands. “Post acquisitions, all the platforms have grown 2-3x in terms of revenue.”
The Good Media Co generates over 4 billion monthly impressions and has over 200 million unique users, the company said in a statement.
“Twinkle is the first celebrity in India to establish a deep connect with the Indian consumer through a scaled-up and successful digital media company. We are excited to partner with the author and entrepreneur. Twinkle to further take Tweak India to new heights and bolster the Good Glamm Group’s Content- Creator-Commerce strategy” said Darpan Sanghvi, Group Founder and CEO of The Good Glamm Group.
The Good Glamm Group is valued at over $1.2 billion and is backed by marquee investors such as Warburg Pincus, Prosus Ventures, Bessemer Venture Partners, and Accel. The startup competes with other direct-to-consumer brands such as Mamaearth, Sugar Cosmetics, Nykaa, Wow Skin, and Plum, among others.
The company also intends to go public and is targeting an initial public offering (IPO) by 2023. For FY21, the company's revenue from operations increased to Rs 49.32 crore from from Rs 43.95 crore in FY20.
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