IPO-eyeing MyGlamm, now Good Glamm Group, targets $250M revenue run rate
After closing its Series C funding of Rs 355 crore from Accel Partners in July this year, which has consolidated all its entities and acquisitions under one umbrella brand as the Good Glamm Group, has raised another Rs 255 crore from Trifecta Capital.
Including the Rs 610 crore raised in the latest series, Good Glamm Group has budgeted an outlay of Rs 750 crore for strategic initiatives. The group is looking to deploy these funds into its consolidated business — MyGlamm, POPxo, Plixxo, and the recently-acquired BabyChakra.
While sources in the know confirmed that the company is now a unicorn, the Good Glamm Group refused to comment on its valuation.
The brand has a revenue run rate of $100 million and is targeting a $250 million run rate by March 2022. It said it is targeting Rs 500 crore revenue run rate for baby care products in the next three years. Good Glamm Group also stated that it is looking for an IPO by financial year (FY) 2023-24.
Commenting on the funding, Rahul Khanna, Managing Partner, Trifecta Capital, said, “Trifecta Capital is proud to partner in this stellar journey of MyGlamm and its transformation into the Good Glamm Group. We are big believers in the company’s vision of building the digital house of brands and have strong conviction in Darpan and his team’s capabilities to execute this bold vision.”
“Through our recently launched equity fund Trifecta Leaders Fund - I, we have provided growth financing to the company. We continue to support such exciting businesses across their lifecycle with a range of financing solutions tailored for the startup ecosystem,” he added.
Darpan Sanghvi, Co-founder and Group CEO, Good Glamm Group
Building a digital CPG brand
According to Darpan Sanghvi, Co-founder and Group CEO, Good Glamm Group, the brand, which is using content, community, and commerce to build a strong network of women consumers, will be investing Rs 450 crore into acquiring companies that align to the three verticals of beauty and personal care, content and influencer marketing, and baby and parent care.
“We are making strategic investments in companies that we feel fit within our group’s vision that fill missing gaps in categories that we want to play in,” he said.
Darpan said that when the team acquired women-centric digital platform POPxo, influencer marketing platform Plixxo, and later BabyChakra, the idea was simple – to build one of the largest content commerce platforms that focuses on the journey of a woman from her tweens until her late fifties.
With the three companies coming together, the idea is to build a large digital Consumer Packaged Goods (CPG) conglomerate.
Darpan explains that while there are several people addressing certain niches in the beauty and personal care segment, it costs money to put the brand out there.
“These were the building blocks of Good Glamm Group. Thus, MyGlamm, POPxo, Plixxo, and BabyChakra are important to create a digital CPG brand out of India. If you look at the traditional CPG companies, there have been a handful out of India, and they don’t have the digital edge we bring in,” he said.
Darpan added the Rs 750 crore is earmarked precisely for investments in all three verticals. Close to 30 percent will be invested towards the digital segment, and 70 percent in the beauty and personal care segment.
While the three platforms - MyGlamm, POPXo, and BabyChakra, will remain independent entities that will have their own goals, they will work towards creating a larger content commerce vertical and a CPG brand.
Beauty and personal care products
Founded in 2015, Good Glamm Group is creating a community for women where they can discuss personal care issues and trends, and educate themselves about the products offered by the brand.
By 2020, it had over 2000 points of sales across 50 cities in India, and by March 2021, it touched 10,000 points of sales across 70 cities in the country. In September 2021, it claims to have reached 30,000 POS across 100 cities in India.
The group is looking to invest Rs 400 crore in a few beauty brands, which will be a mix of strategic investments and acquisitions depending on the fit.
Content and influencer marketing
Good Glamm Group’s acquisition of women-centric digital media and ecommerce platform POPxo in 2020 underlined its larger plans to expand into the online content space and connect with women and reach scale.
POPxo, co-founded by Priyanka Gill, is focussed on helping women become better in all aspects like fashion, beauty, work, etc.
POPxo’s Plixxo is an influencer marketing platform that helps influencers to connect campaigns for brands that people would buy into.
This segment will be focussed on creator and content segment that Priyanka will be handling and managing. Everything to do with content for women and influencer marketing for these women will be managed by her.
The team is looking to invest Rs 150 crore primarily in further building out the content and commerce segment.
“As a group, we now have all the pieces we can plug. The idea is to get the right minded people to partner with to plug in the missing pieces in the group. If you look at content commerce as a vertical, we have been betting on it for some time now. This is a validation of the work done,” said Priyanka.
She adds the influencer segment will bring in the much-needed push to the products. “It is about creating products for the community, from the community.”
Pre-POPxo, in March 2020, Good Glamm Group was acquiring 30,000 new customers per month. Post POPxo-Plixxo acquisition, by September 2020, it has doubled this number to 60,000 new customers per month.
Now, 12 months after POPxo-Plixxo acquisition, Good Glamm Group claims to be acquiring 350,000 new customers every month.
In September 2020, POPxo had over 48 million monthly active users (MAUs), and in August 2021, this touched 60 million, and they are now targeting over 100 million MAUs by March 2022. POPxo also aims to launch beauty products in October 2021, and is targeting a Rs 100 crore revenue run rate by March 2022.
Influencer platform Plixxo had over 125,000 influencers in September 2020, in August 2021 this was 220,000, and the team is now targeting 500,000 influencers by March 2022.
Branching out into baby and parental care
In August this year, Good Glamm Group acquired baby and parental care platform BabyChakra, which provides expecting and new parents with relevant information and personalised content. It also creates a unique care network through access to trusted doctors and experts.
With this acquisition, Good Glamm Group announced that it will be investing Rs 100 crore over the next three years into the brand to launch a mom and baby care vertical. Naiyya Saggi, Founder and CEO of BabyChakra, has joined the Good Glamm Group as its co-founder and president, and will spearhead the new vertical while also building out the overall community for the group. She also joined the Good Glamm Group board.
“Parenting is a high trust journey and the category penetration in terms of information and products is less. The idea is to work with parents and understand their needs better. Using the MyGlamm and POPxo platforms, we are going to be increasing the top of the funnel in terms of the families we access at scale. We’re going to continue building on the communities of parents and doctors using investments in tech and outreach with healthcare professionals,” says Naiyya.
Currently a community of 20 million mothers and 10,000 doctors, the brand targets to have over 75 million mothers by 2022, and will partner with over 20,000 pediatricians and gynecologists by the end of 2022. It is also looking to launch a portfolio of 80+ mom and baby personal care products with 50 percent of them launching by December 2021.
The concept of content commerce is not new. Both China and the US have companies with a strong content commerce presence, with popular platforms such as Little Red Book and Refinery29 as well as BuzzFeed. The idea is simple – why not use the wide reader base that content websites have to create an alternate source of revenue?
“We believe this to be a $10 billion opportunity and $12.5 billion in market cap. The time is ripe for someone who is growing rapidly and has a healthy top line to build a digital CPG brand. You will see a lot of entrepreneurs joining the Good Glamm Group in the next few months and growing revenue numbers,” says Darpan.
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