The newly established Good Glamm Group has acquired direct-to-consumer (D2C) brand The Moms Co in the biggest-ever D2C transaction in the country, the corporation informed on October 6. According to references in industries, the deal is estimated at Rs 500 crore, though the founders did not comment on the exact value of the transaction.
“The Moms Co is one of the best scaled D2C brands in India, and they have achieved a revenue run rate of Rs 150 crore in just four and a half years. Also, the company derives about 50 percent of its revenue from skincare, which is a significant category for us,” Darpan Sanghvi, group founder and CEO, The Good Glamm Group, reported media.
“The company is the right fit for us as it gives us an entry into skincare, strengthens our mom and baby segment, and allows a strong and fast-growing ‘moms’ brand to be a part of the portfolio,” he continued.
This is the company’s first acquisition after uncovering The Good Glamm Group and incorporating all its businesses — MyGlamm, POPxo and BabyChakra — below one roof last week. The business had also published plans to acquire six brands in the beauty and personal care space with the setting up of the organisation and has set aside Rs 750 crore for the purpose.
Targeting energetic revenue aims
After completing the takeover, New Delhi-based The Moms Co is targeting a revenue of Rs 500 crore in the next couple of years. As per the company, the founders Malika Sadani and Mohit Sadaani will operate closely with Naiyya Saggi and Priyanka Gill, co-founders of recently formed Good Glamm Group, to quicken The Moms Co.’s appearance worldwide.
“In the last four and a half years, we have worked with over 2 million moms and been a part of their journey. We have always been led by content and formed a community of moms. And hence, now joining The Good Glamm Group will help us further leverage this opportunity,” stated Malika Sadani, founder and CEO, The Moms Co.
Under the group, the brand will be able to leverage a sizeable digital userbase of over 100 million audiences across POPxo and BabyChakra, over 220,000 Plixxo influencers and BabyChakra’s 10,000 doctors network. The firm also intends to expand its presence from 1500 retail touchpoints to over 20,000 by touching The Good Glamm Group’s retail network.
The Moms Co was founded in 2017 to address a vast gap of toxin-free products in the Indian market for prenatal and postnatal consumption and baby care.
Heading towards IPO
MyGlamm originated in 2017 as a direct-to-consumer platform. It acquired many startups, such as women-centric content platform POPxo in 2020 and parenting platform BabyChakra in August 2021. The firm now plans to take-over five more businesses in the D2C section and execute a revenue run rate of over Rs 1,800 crore by the closing of FY22. The founders claim they currently have a revenue run rate of $100 million (about ₹740 crores.)
After creating its digital family of brands, the organisation will push for an IPO in the next two years.
“We are hoping that we will be listed in 2023 as the first digital CPG company in India,” Sanghvi said in an earlier discussion with the media.
However, the Good Glamm Group is the first D2C company from the startup division striving to go public.
Last week, the company had topped up its series C round with an additional Rs 255 crore led by Trifecta Capital. Most of the funds raised in the fresh round will go towards obtaining new brands.