As funding constraints mount, lenders at the Good Glamm Group have brought in senior executive Arjun Vaidyanathan, former Group Head – Transformation at One 97 Communications, to help tighten financial oversight and enforce spending discipline at the beauty and personal care company.
The former KPMG India Chief Operating Officer (COO) has been tasked with overseeing cash flows, payment approvals, and internal financial controls, according to people familiar with the matter.
“He’s not the CEO, but he’s closely monitoring how money moves,” said one person aware of the development. “Arjun has been appointed by the lenders to ensure that no significant payments—whether to vendors or founders—are made without their knowledge. Its like they want to make sure every rupee spent is accounted for and aligned with agreed protocols.”
The company declined to comment on the development.
The latest move 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.
Accel, Bessemer, Prosus representatives exit The Good Glamm Group’s board: Report
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.
It is learnt that only Miss Malini’s domain name and social media pages will be sold, while its influencer business will continue to stay with Good Glamm Group. This follows a series of other distress sales. One of its earlier acquisitions, Sirona, bought for Rs 450 crore, was sold back to its founders for Rs 150 crore.
Organic Harvest negotiations
Among the latest developments, the company is evaluating a potential exit from Organic Harvest, the skincare label it acquired in 2021. According to sources, discussions are underway with the original founders—similar to the Sirona deal—for a structure that could involve a debt takeover or partial handover of control. However, the deal is still in early stages and not finalised.
“It’s the only deal actively being evaluated. Others are off the table for now,” said one of the people.
In contrast, another proposed brand-level exit—The Moms Co.—has been shelved. Conversations with the cosmetic company Buyume regarding The Moms Co. did not materialise, while the Buyume divestment was dropped at an early stage.
From roll-up ambition to portfolio pressure
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.
The 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 the Rs 363 crore incurred in FY22. Its operating revenue stood at Rs 603 crore, 185 percent higher than Rs 211 crore in FY22, driven by the multiple acquisitions made during that period.
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