MyGlamm, a direct-to-consumer beauty brand in India that sells most of its merchandise by way of its personal web site, app and retail contact factors, mentioned on Monday it has raised $71.3 million in a financing spherical because the Mumbai-headquartered agency appears to scale its enterprise throughout the South Asian market.
The startup had raised $23.5 million in its four-times subscribed Series C financing spherical from Amazon, Ascent Capital and Wipro in March this 12 months. On Monday, it mentioned it has added a further $47.8 million as a part of the spherical — which is now closed.
Accel led the funding within the new tranche whereas current MyGlamm traders — Bessemer Venture Partners, L’Occitane, Ascent, Amazon, Mankekar household, Trifecta and Strides Ventures — additionally participated, Darpan Sanghvi, founder and chief government of MyGlamm, advised TechCrunch in an interview.
Sanghvi began MyGlamm in 2017 after pivoting his earlier enterprise. He recalled the wrestle he confronted elevating cash for a direct-to-consumer brand, which weren’t as fashionable on the planet’s second-largest web market simply 5 years in the past. To make issues worse, MyGlamm was additionally among the many final direct-to-consumer startups to kick off its journeys on the time.
MyGlamm web site. Image Credits: MyGlamm
The startup right this moment operates as a home of manufacturers within the beauty and private care areas. “We function throughout make-up, skincare, haircare, bathtub and physique, and private care. Unlike different manufacturers, we have now been capable of efficiently construct a grasp brand throughout classes,” he mentioned over a video name.
“The purpose we have now been capable of construct it’s because we’re really direct to customers. This permits us to speak very straight with them,” he mentioned, including that almost all different corporations within the business are too reliant on third-party marketplaces for his or her gross sales.
He attributed the current development of the startup, which sells over 800 SKUs throughout classes (up from 600 in March), to its newfound consumer acquisition technique. In August, the startup acquired POPxo, a startup that has constructed a neighborhood round content material, influencers and commerce and serves over 60 million month-to-month lively customers.
“The content material to the commerce engine has turn into our greatest moat,” he mentioned. “We are buying 250,000 new customers every month with out spending any actual cash.”
POPxo, which is run by Priyanka Gill, engages with practically 300,000 customers every month, gathering their suggestions and concepts for brand new merchandise. Gill mentioned in a video name that “on this line of enterprise, CAC (value of buyer acquisition) is the sport and POPxo has solved this downside,” she mentioned, including that POPxo, which is run like a reasonably impartial enterprise, is on monitor to achieve over 100 million customers by March subsequent 12 months.
The startup additionally has 15,000 point-of-sale contact factors within the bodily world throughout India. The bodily presence, which accounts for 40% of the income it generates right this moment, “has been essential to scale within the nation,” Sanghvi mentioned.
“We consider that the time is ripe for constructing out digital-first CPG manufacturers with a deep deal with content-to-commerce,” mentioned Anand Daniel, associate at Accel, in a press release.
“COVID has solely cemented this perception. The distinctive mixture of content material coupled with a compelling product line gave us the conviction to steer this spherical in MyGlamm. We are excited to associate with Darpan, Priyanka and the MyGlamm crew and sit up for constructing out the next-generation CPG big,” he mentioned.
The startup plans to deploy the recent funds to broaden its product improvement, knowledge science and know-how analysis groups. It can also be working to broaden its offline presence and broadening the digital attain of POPxo.
The new funding comes at a time when Indian startups are elevating file capital and a handful of mature corporations are starting to discover the general public markets. Last week, Tribe Capital’s funding topped BlackBuck as India’s sixteenth unicorn this 12 months, in comparison with 11 final 12 months and 6 in 2019. Food supply startup Zomato made a stellar inventory market debut final week and monetary companies corporations MobiKwik and Paytm have additionally filed for his or her IPOs. Insurance aggregator service PolicyBazaar and on-line beauty e-commerce agency Nykaa are additionally anticipated to file their paperwork for an IPO within the coming weeks.