According to three persons familiar with the situation, Good Creator Co (GCC), a subsidiary of the Good Glamm group, is acquiring video commerce platform Bulbul in a cash and equity deal, marking yet another major consolidation move in the creator and influencer economy field.
GCC expects to employ Bulbul’s software stack to assist creators in creating digital shops and ramping up its influencer-led social commerce play as a result of the acquisition.
“Bulbul is being merged into GCC,” said another person with knowledge of the development. “Some early backers will cash out while others will get an equity swap in GCC,” stated another person.
When Good Creator Co was split off in January, the Good Glamm Group, armed with funds collected from investors, committed Rs 200 crore as seed capital. GCC has a 1.5 million strong influencer network across the country. Plixxo, MissMalini Entertainment, Winkl, and Vidooly, an online video analytics business, are among its bought companies and platforms.
Bulbul was one of the first firms to explore with live commerce, having launched in 2018. After that failed to catch on, it shifted its focus last year to digitising storefronts for creators, stores, and sellers, as well as influencer-led sales via pre-recorded video.
It last received $8.7 million in 2020, and its backers include Sequoia’s Surge, Info Edge, and Leo Capital.
Bulbul was selling unbranded products through a network of 1,000 influencers, mainly on YouTube, as of December 2021. According to Bhatia, the platform processed roughly 100,000 transactions per month in December of last year.
Bulbul focuses on tier 2 and tier 3 influencers and markets in the fashion, home and kitchen, and electronics categories. It also developed its own brands, Myfav (for men’s grooming), Noor (for women’s ethnic wear), and Aro (for men’s footwear), which were promoted and pushed by influencers.
The Good Glamm Group has embarked on an acquisition plan to expand and grow its business and enter emerging categories such as women’s hygiene, organic and clean beauty goods, and mother and baby care. The Moms Co, St. Botanica, Sirona, Organic Harvest, and content portals POPxo, Scoopwhoop, and BabyChakra have all been acquired by the D2C beauty conglomerate.
Social commerce space has also seen a significant degree of unification in 2021 with YouTube buying video commerce platform Simsim and Shop101’s acquisition by InMobi’s Glance.
E-commerce companies are looking at investments and acquisitions to lower the cost of gaining new customers and build a social commerce strategy, according to numerous executives.
“This is bound to happen as brands, ecommerce, and social platforms all achieve scale because all three sectors are going to be heavily dependent on the creator economy and would want operational expertise in that area,” said an executive at a creator management company.