Sanghvi Beauty and Technologies, which operates direct-to-consumer (D2C) beauty and personal care brand MyGlamm, on Monday consolidated its various businesses under the Good Glamm Group.
In a statement, the company said it will invest ₹750 crore in four to six digital-first beauty and personal care brands over the next six months, as it pursues inorganic growth.
The company also said it has completed a ₹255 crore Series C fundraise led by Trifecta Leaders Fund and structured financing from Trifecta Capital and Stride Ventures.
MyGlamm is backed by Bessemer Venture Partners, L’Occitane, Amazon, Trifecta and Stride Ventures and other investors.
Between March and September, the company has raised ₹755 crore in funding.
Good Glamm is planning a stock market listing in FY23-24, founder and CEO Darpan Sanghvi said.
D2C brands across categories are set to become a $100 billion addressable market by 2025, according to a 2020 report by Avendus Capital.
The D2C market already has more than 600 brands across categories such as beauty and personal care, packaged foods, apparel and footwear.
Sanghvi said a new set of digital-first brands are likely to emerge to take on incumbent consumer goods players in the beauty and personal care space. “The fast-moving consumer goods conglomerate of the future is going to be built by someone who understands digital really well, and it’s going to be a digital-first FMCG conglomerate,” he said.
Good Glamm will make strategic investments in four to six brands in the skin, hair, bath, body and baby care segments. It could even invest in content-focused platforms that have a big consumer base.
“We’re doing interesting deal structures whereby all the brands that we invest in or acquire will be a combination of cash, some stock in the parent and earn-outs for the founders over the next two years as they scale the brand up,” said Sanghvi.
It will then use its deep network on content-led platforms such as PopXo and BabyChakra, both of which were acquired by Sanghvi Beauty and Technologies, to help brands widen their reach on the internet.
“Brands that come under the Good Glamm Group umbrella will be able to leverage a large digital audience comprising 88 million PopXo annual users, 220,000 Plixxo influencers and Baby Chakra’s 20 million mothers’ community along with MyGlamm’s 20,000 offline points of sale,” the company said.
Sanghvi did not divulge the names of brands that the group will invest in but said it will target anything that accelerates its journey of in the content-to-commerce space.
MyGlamm was founded as a D2C beauty products brand in 2017. In 2020, it acquired content and commerce companies starting with PopXo, a digital community for millennial women, apart from Plixxo, an influencer marketing platform. The buys were focused on building a content-to-commerce strategy.
In August, MyGlamm acquired BabyChakra, a parenting platform and community. It then promised to invest ₹100 crore in BabyChakra to build a mother-baby content-to-commerce platform.
A new set of brands and platforms is emerging, which are targeting shoppers beyond large marketplaces. They use content to engage with shoppers, draw in influencers and push their products online to onboard new customers.