Omnichannel direct-to-consumer beauty brand MyGlamm has raised Rs 175 crore or $24 million in its Series C funding round led by Ascent Capital, Amazon and Wipro Consumer. The latest funding has come after a gap of 20 months for the Mumbai-based startup which raised Rs 100 crore in the previous round led by Bessemer Venture Partners in June 2019.
MyGlamm claims to be valued at $100 million in the fresh financing round. The four-year-old company was valued at around Rs 500 crore or $70 million in the previous round.
Importantly, this is the first investment by Amazon in a direct to consumer or D2C brand in India that sells its product on the e-commerce marketplaces including Amazon. With fresh proceeds, MyGlamm has raised over Rs 300 crore to date.
Led by Darpan Sanghvi, MyGlamm offers over 600 products across makeup, skincare and personal care with a reach of 10,000 offline point of sales across 70 cities in India. According to the company, it plans to increase the network of point of sales to 25,000 by this year.
MyGlamm had acquired Oppo-funded Popxo in August last year. Since then, it has been jointly run by Sanghvi and women-centric community platform Popxo’s Priyanka Gill as co-founders.
The company currently claims to have achieved a revenue run rate of Rs 210 crore and is expected to close the calendar year at around Rs 600 crore in revenue. According to Sanghvi, the company is making operational profit with EBITDA close to profitability.
During FY20, MyGlamm had registered revenue from operations at Rs 44 crore from Rs 13.7 crore in the previous year. The company saw a 2.3X jump in expenses to Rs 110.3 crore in FY20 and incurred a loss of Rs 63.8 crore during the period.
In the D2C beauty brand space, MyGlamm directly competes with Sugar Cosmetics, Mamaearth, Juicy Chemistry and Plum. While Juicy Chemistry recently raised its $6.3 million Series A round, Mamaearth and Sugar Cosmetics had demonstrated significant growth and crossed the Rs 100 crore revenue mark in FY20.
Over the past year, D2C brands have been an attractive proposition for consumers as well as investors. Last month, Elevation Capital led a $21 million round in Sugar Cosmetics and now Amazon’s investment in MyGlamm strengthens the belief and bullishness on the segment.