MyGlamm parent becomes unicorn with $1.2 bn valuation after Warburg-led funding

The Good Glamm Group has grow to be the newest entrant within the rising checklist of Indian unicorns because it raised $150 million (Rs 1,110 crore) in its Series D spherical of funding co-led by marquee buyers together with Prosus Ventures and Warburg Pincus, even because it plans to make 4 extra acquisitions within the haircare, naturals and private hygiene sectors by the top of this 12 months.

The firm’s present investors- L’Occitane, Bessemer Venture Partners, Amazon, Ascent Capital and the Mankekar Family Office participated on this transaction, which is a mixture of major and secondary element. Venture debt investor Alteria Capital can also be stated to have contributed to this spherical.

The firm, which claims to have grow to be the primary magnificence and private care D2C(direct to client) model to enter the coveted unicorn membership, has been valued at $1.2 billion(Rs 8,886 crore) following this transaction. India has seen 35 startups grow to be unicorns in 2021 until date.

The Good Glamm Group plans to make use of these funds to primarily spend money on product growth, help information science and know-how analysis, improve offline enlargement, and in addition to fund working capital necessities.  

“Entering the Unicorn Club marks Day 1 for all of us on the Good Glamm Group. And we couldn’t be extra excited and privileged to embark on the journey from 1 to 10, with Prosus and Warburg, who deliver unbelievable energy and expertise to our firm,” stated Darpan Sanghvi, Group founder and CEO at Good Glamm Group.  

The Good Glamm Group can also be set to make 4 acquisitions in haircare, naturals and private hygiene class by the top of this 12 months, based on Sanghvi. He added that the corporate is prone to spend round $270 million for all of the six acquisitions (together with MomsCo and ScoopWhoop). In October, the corporate acquired digital media and life-style content material platform Kalaari Capital-backed ScoopWhoop Media Pvt Ltd. It additionally purchased out baby-care merchandise startup The Moms Co for an undisclosed sum the exact same month.

Sanghvi Beauty and Technologies, which operates direct-to-consumer (D2C) magnificence merchandise model MyGlamm, unveiled The Good Glamm Group in September beneath which it has consolidated its numerous companies in a bid to strengthen its place as a ‘digital home of manufacturers’ powered by a content-to-commerce technique. Beauty and private care manufacturers owned by the Good Glamm Group embrace MyGlamm (cosmetics model), MomsCo (premium mother and child model), POPxo (cosmetics model for tweens) and Baby Chakra (child merchandise model).  

“We are delighted to again Darpan and your entire group on the Good Glam Group. With a powerful portfolio of D2C manufacturers and proprietary content material belongings, the group is effectively positioned to scale quickly and create a big digital-first enterprise within the magnificence and private care house,” stated Vishal Mahadevia, MD and India Head at Warburg Pincus.  

“We are very excited to associate with the Good Glamm Group to disrupt the sweetness and private care business and this marks our first funding within the DTC class. The Good Glamm group has paired fascinating, homegrown manufacturers with compelling content material, constructing an extremely engaged neighborhood and positioning them effectively for future progress in India and past,” stated Ashutosh Sharma, head of investments(India) at Prosus Ventures. Prosus Ventures is the the Euronext listed entity that holds South African conglomerate Naspers’ worldwide web belongings.  

The Good Glamm Group is especially bullish on haircare, significantly hair color, because it feels that e-commerce penetration in hiarcare is lower than 3.8% regardless of the broader class touted at $3 billion. Sanghvi is equally optimistic that The Good Glamm’s content material to ecommerce moat and superior merchandise may also be useful to get deeper in skincare as effectively. He stated that presently the e-commerce penetration of skincare is lower than 4.5% whereas the class’s dimension is at $2 billion.

Sanghvi stated that the corporate hopes that e-commerce penetration of all these classes will cross 40% within the years to return.

The firm is focusing on to go public by Diwali 2023. Sanghvi has no plans to checklist overseas. “See the multiples of client corporations which have gotten listed on Indian bourses. They have top-of-the-line multiples.”

MyGlamm was based in 2017 by Sanghvi and Gill. The firm claims to be India’s fastest-growing D2C magnificence model, with a spread of over 800 cruelty-free and vegan merchandise throughout classes similar to make-up, skincare, and private care. It additionally has over 30,000 offline factors of sale throughout 70 cities of India.    

In September, MyGlamm topped up its Series C fundraise with a $34 million (Rs 255 crore) infusion led by an fairness funding from the Trifecta Leaders Fund and structured financing from Trifecta Capital and Stride Ventures. Earlier this month, VCCircle reported that MyGlamm is in superior discussions to select up controlling stakes in two private care corporations.

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