India's Good Glamm says restructuring, fundraise underway after directors quit board

India's Good Glamm says restructuring, fundraise underway after directors quit board

Photo by Christin Hume on Unsplash

The Good Glamm Group is undergoing a restructuring and fundraising, weeks after representatives from Prosus Ventures, Accel, and Bessemer Venture Partners stepped down from the board of the Indian D2C beauty and personal care company.

“We are in the midst of a restructuring, and a subsequent fundraise. Our Board is being reconstituted and new members will be joining soon. We would like to thank Vishal Gupta, Anand Daniel, and Gaurav Kothari for their valuable contributions,” the company said in a LinkedIn post on Monday.

According to media reports, Good Glamm Group, which owns MyGlamm, The Moms Co, and Sirona, has been grappling with a funding crunch, salary delays, and layoffs. The company cut 15% of its workforce last year across various departments. As of Sep 30, 2024, the firm had a headcount of 370, according to Tracxn.

Founded in 2015 by Darpan Sanghvi, Priyanka Gill, Naiyya Saggi and Nowshad Rizwanullah, the Good Glamm has raised $432 million in 22 funding rounds from investors including L’Occitane, Amazon, Prosus, Warburg Pincus, Bessemer Venture Partners, and Accel, according to Tracxn.

As of April 2024, the firm had a valuation of $1.25 billion.

The Good Glamm’s captable

Source: Tracxn
Source: Tracxn

Over the last few years, the Good Glamm Group has made 10 acquisitions with an average acquisition amount of $53.6 million. Some of its acquisitions include The Moms Co, Sirona, Bulbul, Tweak India and Organic Harvest.

Board resignations at startups, though rare, have happened at companies like BYJU’s, where GV Ravishankar of Peak XV Partners, Russell Dreisenstock of Prosus, and Vivian Wu of Chan Zuckerberg Initiative stepped down from the board in 2023.

Indian beauty and skincare startups, which till recently were riding high on increasing disposable incomes and self-care awareness, seem to have hit a rough patch. Despite strong investor interest and steady demand, several high-profile brands are grappling with slowing growth, rising competition, and evolving consumer preferences.

Among the most notable is Mamaearth, whose parent company Honasa Consumer posted its first quarterly loss since its public market debut in November 2023. In November, the firm reported a loss that wiped nearly $414.7 million off its market valuation in just two trading sessions.

According to analysts, heightened competition, marketplace saturation, and inflation-driven spending cuts by urban consumers are the key challenges faced by the company.

Other industry players are feeling the pinch as well. Wow Skin Science, backed by ChrysCapital and Singapore’s GIC, has seen sales plummet, although it managed to trim losses by 40% in FY2024, largely by cutting costs.

Meanwhile, Plum Goodness, known for its cleansers and moisturisers, reported a 66% year-on-year rise in net losses to Rs 52.9 crore for FY2023. The company is planning to streamline its product portfolio and refine its marketing strategy to reverse the trend, founder Shankar Prasad told The Economic Times recently.

Even mCaffeine, a coffee-based skincare brand that has gained traction with its innovative offerings, reported a revenue drop to Rs 193 crore in FY2024 from Rs 205.3 crore in FY2023. The company is reportedly exploring acquisitions after struggling to raise fresh funds. Last year, mCaffeine ventured into the “house of brands” model by partnering with popular film actor Kriti Sanon to launch the skincare label HYPHEN.

Edited by: Pramod Mathew

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