The startup reported a net loss of INR 917 Cr in FY23, a 153% higher than INR 362.5 Cr in FY22
Total expenditure rose to INR 1,559 Cr, 170% higher than INR 577.7 Cr it spent the previous year
Operating revenue rose to INR 603 Cr, 185% higher than INR 211.4 Cr
Content-to-commerce platform The Good Glamm Group has seen its net loss inch closer to INR 1,000 Cr mark in the financial year ending on March 31, 2023 (FY23).
Almost after a 15 months delay, the startup’s financial document with the Ministry of Corporate Affairs revealed that it incurred a net loss of INR 917 Cr in FY23, a 153% higher than INR 362.5 Cr it incurred in FY22.
While the loss increased, the startup’s revenue increased by 2.8X in the financial year under review. In FY23, the startup’s operating revenue rose to INR 603 Cr, 185% higher than INR 211.4 Cr.
The startup’s primary source of revenue was selling beauty products, as it accounted for almost 93% of its operating revenue. In FY23, the startup earned INR 560.2 Cr from sale of products, while the remaining INR 40.6 Cr came from the services it offered.
Good Glamm under its umbrella brand owns or has partnerships with D2C brands, including Sirona, The Moms Co, Organica Harvest, and St. Botanica and Wyn Beauty, among others.
Including other income, the startup’s total revenue rose to INR 638.5 Cr, a 176% higher than INR 231.22 Cr in FY22.
Where Did Good Glamm Group Spend?
The primary reason behind the startup’s increase in loss is its stupendous increase in expense. In FY23, the startup’s total expenditure rose to INR 1,559 Cr, 170% higher than INR 577.7 Cr it spent the previous year.
- Marketing & Sales Promotion Cost: The startup’s contributor in its growing expense was its increase in marketing and sales promotion cost. This shot up by 254% to INR 466.2 Cr from INR 131.8 Cr it spent last year.
- Procurement Cost: Being an ecommerce platform, the procurement cost rose to INR 269.4 Cr, a 276% increase from INR 97.8 Cr in FY22.
- Employee Cost: The startup’s employee cost rose to INR 420 Cr, 105% higher than INR 204.9 Cr it spent in the previous fiscal year.
Darpan Sanghvi founded D2C brand MyGlamm
in 2017, Priyanka Gill founded digital media platform POPxo in 2013, and Naiyya Saggi founded online parenting startup BabyChakra in 2015. The three brands came together and rebranded as The Good Glamm Group in September 2021.
Since then, The Good Glamm Group has acquired almost a dozen brands, including ScoopWhoop, Organic Harvest, and Sirona.
Currently, The Good Glamm Group has four verticals – The Good Brands Co, which has a portfolio of D2C beauty and personal care brands, digital content platform The Good Media Co; tech-enabled influencer platform The Good Creator Co; and Good Community, an omni-channel network of consumers and experts focusing on beauty, parenting, sexual and intimate health.
To date, the startup has raised $270 Mn in funding and counts the likes of Prosus Ventures, Warburg Pincus, L’Occitane, Bessemer Ventures and Amazon among its investors.
Earlier this year, the startup raised $30 Mn at a flat valuation from its existing investors and laid off around 150 employees or 15% of its workforce in a restructuring exercise undertaken with an aim to turn profitable in FY25.
A part of the restructuring exercise also resulted in adding several new names to the C-suite. Besides appointing Kamal Lath as the Group CFO, the company saw Manan Jain take charge as Group COO, Kartik Rao as Group CPO, Avalok Langer as new Group CCO, among others.
At the end of April, content-to-commerce unicorn’s CEO of D2C vertical The Good Brands Co, Sukhleen Aneja, departed from the startup. Earlier, Priyanka Gill moved away from day-to-day operations at The Good Glamm Group to join Kalaari Capital as a venture partner.
