Content-to-Commerce Company, The Good Glamm Group had to sell Sirona back to its founder, after acquiring the feminine hygiene brand in October last year. This is one of the few times a start-up has taken back its brand after being acquired.
This update comes while The Good Glamm Group battles with several financial and legal troubles, including salary delays, leadership exits, layoffs and more. The company has experienced several setbacks over the last year, despite profitability vision and IPO aspirations.
The Good Glamm Troubles
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.
Good Glamm’s Thrasio Model
The Thrasio model, named after US-based Thrasio, involves acquiring strong third-party brands and scaling them up through improved operational efficiencies, marketing, and distribution channels. Inspired by the model, Indian companies such as GlobalBees and The Good Glamm Group adopted the model for the Indian market's specific dynamics.
GlobalBees applied the Thrasio model by optimising brands for several e-commerce platforms, including Amazon India and Flipkart. They also offered strategic advice on marketing, supply chain management, and product development. GlobalBees targets brands with yearly revenues of $1mn to $20mn and integrates them into its ecosystem. It earned unicorn status in December 2021, demonstrating its tremendous expansion.
The Good Glamm Group applied this model by acquiring digital-first beauty and personal care brands, integrating them into its ecosystem, and scaling them using its robust content-to-commerce platform, which leverages its vast digital audience from platforms like PopXO and ScoopWhoop for targeted marketing and sales growth.
