Distress Deal: Cash-strapped Good Glamm Group to sell MissMalini for Rs 4 crore

Darpan Sanghvi- CEO -The Good Glamm Group

Warburg Pincus-backed The Good Glamm Group (GGG) is in advanced stages to sell media and influencer talent management network MissMalini Entertainment.

In what looks like a distress sale, the Mumbai-based MissMalini will be acquired for Rs 4 crore by marketing agency Creativefuel, according to people aware of the development. The agency recently also bought two YouTube channels called Hasley India and Pataakha.

In 2021, GGG had bought the media company’s five business divisions, including content and marketing platform MissMalini, women's community platform Girl Tribe by MissMalini, celebrity and talent management arm Ignite Edge, creative agency Agent M Creative, and production house MM Studios. The deal is estimated between Rs 70-80 crore. However, people close to the company said that GGG had bought MissMalini for around Rs 3 crore.

Moneycontrol has learnt that Miss Malini's domain name and social media pages will be sold while its influencer business will continue to stay with GGG.

GGG did not immediately reply to Moneycontrol’s queries.

The content-to-commerce startup Good Glamm Group has also put some of its other companies on sale, Moneycontrol had reported earlier.

Brands like Organic Harvest, The Moms Co owned by GGG are up for sale at a time when the content-to-commerce company is starved for cash and is attempting to raise capital to keep operations afloat.

Its other previously owned companies like Sirona have been sold back to their founders. GGG’s another firm ScoopWhoop, is also sold.

The founders of D2C startup Myglamm, digital media platform POPxo and online parenting startup BabyChakra came together to form The Good Glamm group in September 2021. Since then, the group has acquired a dozen brands, including ScoopWhoop, St. Botanica and several others.

The Good Glamm Group has raised around $400 million in nine years from marquee investors like Amazon, Accel, Bessemer Venture Partners, Prosus Ventures, Warburg Pincus and several others who valued the company at $1.26 billion.

While the Good Glamm Group had set its sights on an initial public offering (IPO) in FY25, the journey has been challenging for the company.

The company laid off 150 employees in April last year when Sukhleen Aneja, CEO of the company’s core business, exited the company. Aneja later joined Nykaa, a company that competes with The Good Glamm Group.

The Good Glamm Group's FY23 results, which came after a 15-month delay, showed the company’s losses had spiked to Rs 917 crore, 153 percent higher than Rs 363 crore incurred in FY22.

Its operating revenue stood at Rs 603 crore, 185 percent higher than Rs 211 crore recorded in FY22, thanks to multiple acquisitions that the company made.