Good Glamm’s Pay Delay: April Salaries, Layoff Dues on Hold Amid Fund Crunch

Cash-strapped Good Glamm Group has delayed salaries for the month of April, according to a report published by Mint. Not only this, the Darpan Sanghvi-led company has also not yet settled the full and final payments for employees who were recently laid off.

The beauty products platform told its employees to settle down April dues, along with May’s salary by June, the report said, adding that former employees will also be paid as soon as the company completes its fundraising process.

One of its former employees told Mint that some former workers did not even get salaries for the months of February and March. And most importantly, the company did not have any “clear conversation” with laid-off employees about the due payments, it added.

The Arc had also earlier reported that the Good Glamm Group even delayed salary payments of around 300 employees in January.

The Good Glamm Group Crisis

The Good Glamm Group is experiencing serious financial difficulties, including cash flow troubles that have resulted in delayed salary payments and mass layoffs. This financial distress has harmed investor trust, causing board resignations from significant investors such as Accel Partners, Bessemer, and Prosus Ventures.

The company, once valued at $1.2bn, is now battling to retain liquidity, raising questions about its long-term viability and future potential.

The company has seen substantial leadership changes, including the departures of co-founder Priyanka Gill and CFO Piyush Kalra. High-level exits can cause strategic instability and operational hurdles, limiting the company's capacity to handle its current financial troubles.

Furthermore, the corporation has revamped its leadership team, naming new executives Manan Jain as Group COO and Kartik Rao as Group Chief People Officer.

To address its financial troubles, The Good Glamm Group has laid off around 15% of its workforce (150 employees) as part of a comprehensive reorganisation targeted at reaching profitability by FY25. In addition, the company is considering selling some of its acquired brands, such as Organic Harvest and The Moms Co. to obtain funds. Potential buyers like Mamaearth, Nykaa, and Purplle are being approached to acquire these brands.