Like the classic novel Strange Case Of Dr Jekyll and Mr Hyde, there are two sides to the Good Glamm Group. One that’s always flexing and one that seems to be in flux.

The Darpan Sanghvi-led company made big claims about profitability, plans for an IPO, international expansion, entry into the premium segment and more. But a lot of this seems to be smoke and mirrors — the reality is completely stark to this sunny optimism.

Forget the plans and the ambitions: here’s what has actually happened in the past year at the Good Glamm Group (GGG).

• Good Glamm Group Gets Default Notice From IAN, Founders Of Sirona And The Moms Co
• Good Brands Co CEO Sukhleen Aneja Quits Good Glamm Group
• Good Glamm Group Looks To Put Brands On Sale
• More Layoffs At Good Glamm Group
• And the most recent headline: Accel, Prosus, Bessemer Step Down From Good Glamm Board

Even as it has fulfilled a portion of its acquisition obligations related to Sirona and The Moms Co in the past few months, Good Glamm Group’s house of brands and ecommerce platform seems to be on the edge.

The company’s content-to-commerce play has crumbled, and changes to operational and management structures are alleged to have derailed acquired brands and left them in disarray. The company’s bullishness on omnichannel growth has also faded in the past 15 months.

Sources close to the management told Inc42 that GGG is in talks with multiple investors to raise INR 240 Cr in funding, but given its accumulated losses and hefty debt of more than INR 450 Cr, how far will this infusion go?

Going From Beauty To BYJU’S

“Good Glamm Group is becoming the BYJU’S of the commerce world,” one source aware of the current state of the debt-ridden company remarked.

Worryingly, the Amazon-backed startup, which was valued at over $1.2 Bn valuation just two years ago, is looking to raise funds at a valuation of close to INR 1,000 Cr (just under $120 Mn today). Investors that backed the company in the early days stand to incur a heavy loss on their investment.

That’s a 90%-plus haircut on its previous valuation, showing how the company’s promise of becoming a house of brands has disintegrated. Despite acquiring more than 10 companies — GGG, like BYJU’S — failed to create the commerce flywheel that could sustain all these brands.

Sources that have worked with the company over the past few years also claim the group’s management tweaked product formulations for several SKUs, leading to a drop in quality and bad reviews.

Presence on marketplaces and key new channels such as quick commerce is another major challenge for the house of brands, and the revolving door at the leadership level does not help matters.

Here’s a laundry list of the issues at the Good Glamm Group:

• Multiple rounds of layoffs and delays in salaries; Offices in Delhi and Mumbai shut
• Exit of senior CXOs, including CBO Bhavesh Singhal
• Failure to complete payments for past acquisitions, resulting in legal notices
• Uncleared vendor dues and inventory crunch

As per sources, the existing investors were asked to step aside from its board as the company is looking to bring in a new majority shareholder at a lower valuation, in the hope of turning around its financial state.

At the same time, Darpan Sanghvi, MD and CEO of the Good Glamm Group (GGG), who is based out of Singapore, and two other members of the Sanghvi family currently sit on the board, along with former L’Occitane CEO André J. Hoffmann.

L’Occitane remains the largest shareholder in the company as per its existing cap table.

But all that could change if GGG manages to raise funds from new investors. Sources claim the company is raising between INR 150 Cr ($17 Mn) and INR 250 Cr ($28 Mn) in an equity funding round at a post-money valuation of up to INR 1,000 Cr........

© Inc42