Good Glamm Group, a content to commerce group, has acquired direct to consumer D2C brand The Moms Co. in a cash and stock deal to build its content plus commerce ecosystem. This is the third major acquisition by the group in the past 15 months after POPxo and BabyChakra.
Following the acquisition, The Moms Co. will continue to operate independently and its founders Malika Sadani and Mohit Sadaani will join Good Glamm Group, said MyGlamm’s founder and chief executive Darpan Sanghvi in interaction with Entrackr.
While both companies didn’t disclose the acquisition amount, according to Entrackr sources, the company has been acquired for anywhere between Rs 300-350 crore. All other investors—mostly angels—will exit but its institutional backers DSG and Saama Capital will hold a stake in the Good Glamm Group.
“Good Glamm Group will invest Rs 100-150 crore as primary capital in The Moms Co,” said one of the sources requesting anonymity.
With this acquisition, The Moms Co. will be able to leverage a large digital audience of over 100 million users across POPxo and BabyChakra, over 220,000 Plixxo influencers and BabyChakra’s 10,000 doctors network, said Good Glamm Group in an official release.
Good Glamm Group had acquired POPxo in August 2020 and it took over Mumbai-based Babychakra a year later.
Backed by the likes of L’Occitane, Accel, Amazon, Bessemer Venture Partners, Ascent Capital, Trifecta Capital and Stride Ventures, Good Glamm Group has earmarked a Rs 750 crore war-chest to make strategic investments in innovative beauty & personal care brands within the next 3 to 6 months.
According to Entrackr’s sources, the Good Glamm Group is likely to acquire a few more direct to consumer brands in the ongoing fiscal.
The Moms Co. stakeholding structure and financials
Founded in 2016, The Moms Co. claims to have catered to over two million customers and aims to grow to a Rs 500 crore revenue run rate in the next two years. As of now, it has raised three rounds of funding so far with an angel investment round in 2016, a Pre Series A round in 2017 and a Series-B round in 2020.
Prior to this transaction, Saama Capital was the biggest stakeholder in the company with 30.10% share, while cofounders Malika and Mohit Sadani collectively owned 40.87%. DSG Consumer Partners commanded 22.62% whereas other stakeholders had the remaining 6.41%.
In FY20, the D2C startup managed to triple its revenue from operations to Rs 22.23 crore from only Rs 7.4 crore in FY19. During the same period, its annual expenses also surged 2.085X to Rs 32.8 crore in FY20 from Rs 11.5 crore in FY19.
While EBITDA margins remained somewhat stable at -46.3%, annual losses ballooned 3.4X to Rs 7.87 crore during FY20.