Sanghvi Beauty and Technologies, which operates the direct-to-consumer (D2C) beauty and personal care brand MyGlamm, consolidated its various businesses under the Good Glamm Group on Monday.
In a statement, the company said it will invest ₹ 750 crore in four to six digital beauty and personal care brands over the next six months, while pursuing inorganic growth.
The company also said it has completed a ₹ 255 crore Series C fundraiser 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 funds.
Good Glamm is planning a listing on the stock market on fy23-24, said founder and CEO Darpan Sanghvi.
D2C brands across all categories will become a $ 100 billion addressable market by 2025, according to a 2020 report from Avendus Capital.
The D2C market already has more than 600 brands in categories such as beauty and personal care, packaged food, clothing and footwear.
Sanghvi said a new set of digital brands is likely to emerge to take on existing 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 very well, and it is going to be a digital consumer goods conglomerate,” he said.
Good Glamm will make strategic investments in four to six brands in the skin, hair, bath, body and baby care segments. You could even invest in content-centric platforms that have a large consumer base.
“We are making interesting deal structures where all the brands we invest or acquire in will be a combination of cash, some parent stock and earnings for the founders over the next two years as they expand the brand,” Sanghvi said .
It will then use its deep network on content-based platforms like PopXo and BabyChakra, both acquired by Sanghvi Beauty and Technologies, to help brands expand their reach on the internet.
“Brands under the Good Glamm Group umbrella will be able to tap into a large digital audience comprising 88 million annual PopXo users, 220,000 Plixxo influencers, and Baby Chakra’s community of 20 million mothers along with 20,000 points of offline sale of MyGlamm, “the company said.
Sanghvi did not disclose the names of the brands the group will invest in, but said he will target anything that accelerates his journey in the content-to-commerce space.
MyGlamm was founded as a D2C beauty brand in 2017. In 2020, it acquired content and commerce businesses starting with PopXo, a digital community for millennial women, in addition to Plixxo, an influencer marketing platform. Purchases focused on building a content-to-commerce strategy.
In August, MyGlamm acquired BabyChakra, a parenting community and platform. He then promised to invest ₹ 100 crore in BabyChakra to build a mother and baby commerce content platform.
A new set of brands and platforms is emerging, targeting buyers beyond the big markets. They use content to engage with buyers, attract influencers, and push their products online to onboard new customers.