Good Glamm Group bags $150 million funding at $1.2 billion valuation

The funding spherical catapults the buyer model agency into an ever-growing tribe of Indian unicorns, that are privately held startups with a valuation of $1 billion or extra.

Good Glamm, the dad or mum of manufacturers like MyGlamm, BabyChakra, PopXo and Scoopwhoop, will probably be valued at $1.2 billion post-money, a senior firm government instructed ET.

This makes it the second firm within the buzzy D2C house to succeed in the $1 billion valuation mark after Licious, which raised $52 million in a spherical led by IIFL’s Late Stage Tech Fund and Avendus final month, valuing the meats and seafood firm at $1.05 billion after the funding.

ET was the
first to report about Good Glamm being in talks for a funding round on October 20.

The fundraise consists of $15 million of enterprise debt from Alteria Capital, Good Glamm’s cofounder and CEO, Darpan Sanghvi, instructed ET. Different present buyers akin to French magnificence model L’Occitane, Bessemer Enterprise Companions, Amazon, Ascent Capital and the Mankekar Household Workplace have additionally participated within the newest financing spherical.

With Prosus and Warburg Pincus pumping in $65 million every, early backers akin to Chiratae Ventures (previously IDG Ventures India) are partially cashing out.

“Some early buyers who had been on the PopXO capitalisation desk and had joined Good Glamm as a part of the acquisition final yr will even exit via this funding spherical,” Sanghvi instructed ET. The secondary transaction is predicted to be round $5 million, he added.

In September, Good Glamm closed its
extended Series C round after it raised $100 million in whole from buyers led by enterprise capital fund Accel.

“Thus far, now we have executed M&A offers price Rs 2,000 crore, spending nearly Rs 750 crore in money,” Sanghvi stated, including: “We’ll purchase two extra manufacturers by finish of the calendar yr after which give attention to rising every line of enterprise.”

These embrace product growth, knowledge science and expertise analysis to extend offline growth. The proceeds will even be used to fund working capital necessities, and develop the content material creation capabilities and digital attain of PopXo, BabyChakra and ScoopWhoop. The group will proceed to make investments in additional magnificence and private care manufacturers, Sanghvi stated.

Good Glamm, beforehand MyGlamm, has been rolling up smaller manufacturers into its fold and intends to develop them individually via the content-to-commerce playbook it follows. The corporate is clocking an annualised income run fee of $120 million.

“We’re anticipated to shut the monetary yr ending March 31, 2022, at $250 million in revenues,” Sanghvi stated.

Income run fee is a manner of projecting upcoming income primarily based on beforehand earned income.

“We’re very excited to companion with the Good Glamm group to disrupt the sweetness and private care trade and this marks our first funding within the DTC class,” stated Ashutosh Sharma, head of investments, India, at Prosus Ventures.

The festive season helped the corporate develop its offline enterprise 100% year-on-year. Offline contributes round 25% to the income. Its on-line enterprise additionally doubled on yr. Whereas the flagship model, MyGlamm, introduced in $62 million, acquisitions akin to PopXO, BabyChakra, Mother’s Co and Scoopwhoop accounted for the remainder.

“With a powerful portfolio of D2C manufacturers and proprietary content material property, the group is nicely positioned to scale quickly and create a big digital-first enterprise within the magnificence and private care house,” stated Vishal Mahadevia, managing director and India head at Warburg Pincus.

New-age, digital-first private care and wonder manufacturers akin to Purplle, Sugar Cosmetics, Mamaearth and Plum Cosmetics have attracted the curiosity of danger buyers whereas the most important participant – Nykaa – is
expected to debut on the Indian public market on November 10.

Nykaa raised Rs 5,352 crore from its main stake sale with the difficulty getting subscribed 82 occasions. The pandemic has boosted the enterprise of online-led manufacturers because it has hastened digital adoption by shoppers and led them to more and more purchase these merchandise.