After closing Series C funding round, D2C beauty startup MyGlamm has big plans: to become a $5B company
Darpan Sanghvi, Founder and CEO, MyGlamm, tells YourStory’s Daily Dispatch that the beauty startup saw good growth amid the pandemic and is now aiming to invest in tech, data science, and expansion.
Popular D2C beauty brand MyGlamm recently raised fresh funding of Rs 355 crores from Accel.
Darpan Sanghvi, Founder and CEO, MyGlamm, says the D2C startup started the Series C round of funding in March 2021 and raised Rs 175 crore.
The brand - founded in 2015 – registered good growth in the last quarter, bringing on board actor Shraddha Kapoor as a brand ambassador and investor.
“All of that culminated into revenues doubling and Accel getting excited about MyGlamm,” Darpan says. The company is now closing its Series C round at Rs 530 crore in a round led by Accel.
“The capital is not needed to take care of operational burn, but for growth,” says Darpan, adding that the company is going to invest a lot more in tech and data science. It is also expanding the product portfolio and covering most categories, including makeup, skincare, haircare, personal care, etc.
MyGlamm had acquired women-centric digital platform POPxo and influencer marketing platform Plixxo in 2020. The beauty startup leveraged POPxo’s reach of 60 million monthly active users to create a content-to-commerce journey that brought down MyGlamm’s Customer Acquisition Cost (CAC).
A big believer in omnichannel, the startup will now also invest on branding and in POPxo and Plixxo to increase the platform’s reach.
Darpan shares that most of MyGlamm’s revenues come from their website and app. Around 98 percent of the online revenue comes from the MyGlamm website and app; the remaining 2 percent from marketplaces.
Category-wise, 75 percent comes from makeup while 25 percent comes from personal care. “We see the year ending with 60 percent makeup and 40 percent personal care. Within makeup, the largest driver is lipsticks,” he says.
He mentions that before the POPxo deal in August, 2020, MyGlamm was acquiring 30,000 customers a month; this changed to 60,000 customers in September 2020. Currently, the company is acquiring 2,50,000 new customers a month and the aim is to take that figure up to 3,50,000 new customers a month by December.
“This year, we’re looking to acquire about 4 million new customers in this 12-month period,” Darpan says. With the closing of the Series C round, the revenue target for the company has jumped to Rs 750 crore run rate by December 2021.
Darpan believes fundraises and milestones are just milestones. The most meaningful question for the company is “how big is our IPO going to be”. Valuations have evolved and are “appropriate” to the business model that they have.
“We’re not building a billion-dollar company. The opportunity is much larger. We are building a $5 billion company,” Darpan says.
Edited by Teja Lele