MyGlamm, a direct-to-consumer beauty brand, completed the Series C funding round with a funding raise of approximately $24 million(Rs 175 crore). The current funding round was led by Amazon, Wipro Consumers, and Ascent Capital. Amazon has invested the first time in MyGlamm.
As per the old funding round details, the startup had the latest funding round after a gap of 20 months. In the last funding round in June 2019, MyGlamm raised Rs 100 crore led by Bessemer Venture Partners. The beauty startup is Mumbai-based.
Current Financial Status of MyGlamm
The startup has announced that it has reached a valuation of $100 million after the Series C funding round. In the last funding round, it was valued at approximately $70 million.
Talking about the current investment, Sumit Keshan, Managing Partner, Wipro Consumer – Ventures, said:
“We have been tracking MyGlamm for over 15 months, and are very impressed with the way it handled the COVID uncertainty, as well as built strong internal capabilities, including POPxo acquisition. We are very confident in their growth story, and are excited to be part of it and backing them.”
Amazon, one of the main players in the current funding round, has the first investment in direct to consumer product startups in India. If we talk about the whole funding up to now, the company has raised Rs 300 crore in different funding events.
Answering a question related to current investment in MyGlamm, Vasanthakumar, Partner, Ascent Capital, said:
“We are excited to back MyGlamm. With its formidable founders and clear strategy, the company is poised to be a significant player in the Direct-to-Consumer segment.”
MyGlamm started its operations in 2019 led by Darpan Sanghvi. Currently, it offers 600+ products in different categories like makeup, personal care, and skincare. It also has a wide geographical presence across 70+ cities with more than 10,000 offline points of sales. The company is planning to increase the point of sales network to 25,000 this year.
MyGlamm CEO Darpan Sanghvi talked about the L’Occitane investment in the startup. He praised Amazon, Wipro, and Ascent Capital as well for supporting the startup.
“Through L’Occitane’s investment in MyGlamm, I have experienced first-hand the value that such investors can bring to a startup, and we are excited about all that we will be able to learn from Amazon and Wipro Consumer, along with the financial rigor that Ascent Capital brings as we move forward to fulfil our vision of building India’s largest beauty company, leveraging DTC, digital, and data.”
What is the Future of D2C Brands and MyGlamm?
Startup data records claim that the company has recorded a revenue run rate of Rs 210 crore and believes that it will finish the current year with Rs 600 crore revenue. According to Sanghvi, the company is making an operational profit with EBITDA close to profitability.
For strengthening its base, the startup acquired Popxo last year. Since then, the company is jointly run by Sanghvi and Priyanka Gill as co-founders. Popxo is a women-oriented community venture founded by Priyanka. The acquisition will help MyGlamm to bring more women traffic for better conversation.
During the financial year 2020, MyGlamm earned a total operating revenue of Rs 44 crore that is around Rs 31 crore higher than last year’s revenue. With geographical expansions, the company’s expenses increased by 2.3X to Rs 110.3 crore in FY 2020. The startup recorded a loss of Rs 63.8 crore in the same financial year.
MyGlamm has tough competition in the beauty sector. Companies like Sugar Cosmetics, Mamaearth, Juicy Chemistry, and Plum are showing notable growth in recent year. Mamaearth crossed the Rs 100 crore revenue mark in 2020, whereas Juicy Chemistry has raised $6.3 million from its investors.
Since 2020, investors have shown good interest in D2C brands. Sugar Cosmetics raised $21 million last month from Elevation Capital. Amazon’s investment in MyGlamm has established more trust in Direct to Consumer(D2C) brands.