Several restructuring discussions underway with lenders: Good Glamm’s Darpan Sanghvi

Darpan Sanghvi

Darpan Sanghvi, founder and CEO of the Good Glamm Group, on Thursday acknowledged the company’s ongoing financial distress and revealed that “several restructuring discussions” are underway in conjunction with lenders, in an effort to revive the embattled content-to-commerce brand.

In a personal post on LinkedIn, Sanghvi admitted to prolonged salary delays and operational payment disruptions, following the collapse of a near-final brand sale deal last year that would have provided the company a crucial financial lifeline.

Per Sanghvi, the group was close to selling one of its brands late last year at the end of its funding cycle. The deal, which he says would have secured the company’s financial future, fell apart at the last minute after the CEO of the acquiring company stepped down.

“It was a gut punch out of nowhere that sent us scrambling for funding and securing a lifeline,” Sanghvi wrote, adding that this set off a chain of events that led to severe cash flow challenges, delays in employee salaries, and disrupted vendor payments.

In the months since, Sanghvi said he and a “far smaller” team have been trying every possible measure to generate cash and keep operations afloat. “We’ve been sending regular updates via email, but the progress is slow,” he wrote, acknowledging the growing frustration among employees and stakeholders.

“To everyone reaching out with personal queries… we are here for you and doing our best,” he said.

Inside Good Glamm

The note comes at a time when cash-strapped Good Glamm Group, once valued at $1 billion, is trying to negotiate a down round with Gujarat-based Veloce Fintech to raise fresh capital amid rising costs, high cash burn, and mounting debt from lenders like Stride Ventures, Trifecta, Alteria, Oxyzo, besides credit lines from banks like HDFC and HSBC.

The Prosus and Warburg Pincus-backed firm had acquired several brands in the past; however, the strategy fizzled out amid financial constraints, with vendor dues pending for over a year.

Moneycontrol was the first to report on the brewing trouble at the content-to-commerce firm as it scouted for buyers for its acquired brands, including Organic Harvest, The Moms Co., and Sirona, as it struggled for cash.

It sold ScoopWhoop for Rs 18–20 crore, a fraction of its 2021 valuation, and is in advanced stages of selling its media and influencer talent management subsidiary Miss Malini to marketing agency Creativefuel for Rs 4 crore, in what appears to be a distressed sale.

The firm had acquired Miss Malini in 2021 for Rs 70–80 crore, Moneycontrol reported.

Sanghvi concluded the note with a public apology to his team and stakeholders.

“It is my moral responsibility to resolve this for every past and present employee, and for every stakeholder, whether it’s our lenders, vendors, or our equity shareholders, and set things right.”

Founded by Darpan Sanghvi, Priyanka Gill, and Naiyya Saggi, the Good Glamm Group had raised over $250 million from investors like Prosus Ventures, Warburg Pincus, Bessemer Venture Partners, and others, who valued the company at $1.26 billion in 2021, to build a full-stack content-to-commerce business.

The Good Brands Co. comprises beauty and personal care brands (in-house and acquired) such as MyGlamm, St. Botanica, Sirona, BabyChakra, The Moms Co., and Organic Harvest, while The Good Media Co. includes POPxo, ScoopWhoop, Miss Malini, BabyChakra, and Tweak India. The Good Creator Co. serves as an influencer platform alongside The Good Community.