The Good Glamm Group (formerly MyGlamm) acquired the direct-to-consumer (D2C) brand for maternal and child care The Moms Co, marking the first major consolidation movement in the beauty and personal care segment. The companies declined to comment on the financial terms of the deal. Known sources said the deal was a mix of cash and stock from The Moms Co at Rs 500 crore.
The deal is the largest acquisition in the dynamic beauty and personal care segment D2C, which has garnered investor interest in the past year . The Good Glamm Group’s third major acquisition, following the Baby Chakra parenting platform earlier this year and the PoPXo content and commerce platform in 2020.
“This acquisition gives us an entry into the healthcare category of skin and helps us perform better in the mom and baby care category, ”told ET. Darpan Sanghvi, co-founder and CEO of The Good Glamm Group. “ We are looking to grow The Moms Co at a rate income of Rs 500 crore over the next 24 months “, he added. Currently, comp any shows an annual income rate of Rs 150 crore. This is a projection of future income based on revenue already earned.
“The space we find ourselves in is driven by content, community and brand trust.Being part of the Good Glamm group will help us with distribution and scale, ”said Malika Sadani, co-founder and CEO of The Moms Co. According to Sadani, the company was looking to attract more investors, but chose to merge with The Good Glamm Group instead for better synergies. The Mom’s Co is backed by DSG Partners and Saama Capital and angel investors such as Ashutosh Valani and Priyank Shah, the founders of men’s hygiene company Beardo.
Founded in 2016, The Moms Co started serving mom and baby categories, then branched out into women’s skin care products. Today, it sells through 1,500 retail outlets. Last week, The Good Glamm Group said it closed its extended Series C cycle with total funding of Rs 755 crore ($ 100 million) Sanghvi told ET that the company will acquire four to six companies in categories such ashygiene, the bathroom and the body, p her, hair and natural products in the next 90 180 days. “These acquisitions will be made using around $ 30 to $ 40, 30% share swaps and around $ 30 in founders cash outflows,” Sanghvi said. The D2C brands in the beauty and personal care category have grown at an unprecedented rate and have attracted capital from venture capitalists.
According to data from Venture Intelligence, the beauty and personal care segment attracted $ 365 million in 27 funding rounds between January and September 30 of this year.In 2020, there were 26 deals worth $ 102 million, while in 2019 there were 22 deals totaling $ 132 million. Companies like Nykaa, Sugar Cosmetics, Purplle, Plum and Mamaearth are the big players in the market. Nykaa is looking to raise Rs 4,000 crore on the IPO, valuing it at $ 5.5 billion. Purple is also in talks to raise $ 50 million to $ 75 million, valuing the company at $ 500 million, sources said.
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