MyGlamm Raises $71 Million in Funding

MyGlamm Secures $71.3 Million to Expand Across South Asia

MyGlamm, an India-based direct-to-consumer beauty brand, announced on Monday a $71.3 million funding round. This capital injection is intended to facilitate the company’s expansion throughout the South Asian market.

Recent Funding and Investment Details

Earlier this year, in March, the Mumbai-headquartered startup secured $23.5 million in a Series C funding round, which was oversubscribed four times. This round included investments from Amazon, Ascent Capital, and Wipro. The company has now finalized this round with an additional $47.8 million in funding.

Accel spearheaded the latest investment tranche. Existing investors, including Bessemer Venture Partners, L’Occitane, Ascent, Amazon, the Mankekar family, Trifecta, and Strides Venture, also participated, as confirmed by MyGlamm’s founder and CEO, Darpan Sanghvi, in a TechCrunch interview.

Overcoming Early Challenges

Sanghvi founded MyGlamm in 2017 after a strategic pivot from a previous venture. He reflected on the difficulties encountered while securing funding for a direct-to-consumer brand, a model that was less established in India’s internet market five years ago. Furthermore, MyGlamm launched relatively late compared to other direct-to-consumer startups at the time.

A House of Brands Approach

Currently, MyGlamm functions as a multi-brand platform within the beauty and personal care sectors. The company’s portfolio encompasses makeup, skincare, haircare, bath and body products, and general personal care items. Sanghvi emphasized their success in establishing a unified master brand across diverse categories.

A key differentiator, according to Sanghvi, is their direct-to-consumer approach. This enables more direct communication with customers, unlike competitors who heavily rely on third-party marketplaces for sales.

Strategic Acquisition of POPxo

The startup’s recent growth, now offering over 800 SKUs (compared to 600 in March), is attributed to a revised user acquisition strategy. In August, MyGlamm acquired POPxo, a platform centered around content, influencers, and e-commerce, boasting over 60 million monthly active users.

“The integration of content and commerce has become our most significant competitive advantage,” Sanghvi stated. He noted that the company is currently acquiring 250,000 new users monthly without substantial marketing expenditure.

POPxo's Role in User Acquisition

POPxo, led by Priyanka Gill, actively engages with approximately 300,000 users each month, gathering valuable feedback and insights for product development. Gill highlighted that POPxo effectively addresses the critical challenge of customer acquisition cost (CAC), operating as a largely independent entity and projecting to reach over 100 million users by March of next year.

Blending Online and Offline Presence

MyGlamm also maintains a physical presence with 15,000 point-of-sale locations across India. This offline network currently contributes 40% of the company’s total revenue and is considered vital for scaling operations within the country.

Investor Confidence and Future Plans

Anand Daniel, a partner at Accel, expressed confidence in the potential of digital-first CPG brands with a strong focus on content-to-commerce. He stated, “COVID has reinforced this belief.”

“The unique synergy of compelling products and engaging content led us to lead this investment round in MyGlamm. We are eager to collaborate with Darpan, Priyanka, and the MyGlamm team to build the next generation of CPG leaders,” Daniel added.

The newly acquired funds will be allocated to expanding the company’s product development, data science, and technology research teams. Furthermore, MyGlamm intends to broaden its offline reach and enhance the digital presence of POPxo.

India's Thriving Startup Ecosystem

This investment arrives during a period of record capital raising for Indian startups. Several established companies are also exploring initial public offerings (IPOs). Recently, Tribe Capital’s investment designated BlackBuck as India’s 16th unicorn this year, a significant increase from 11 in the previous year and six in 2019. Zomato’s successful IPO last week, along with IPO filings from MobiKwik and Paytm, demonstrate this trend. PolicyBazaar and Nykaa are also anticipated to submit their IPO paperwork in the near future.