Good Glamm restructuring talks underway, CEO says in note apologising for salary delays
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Troubled beauty products retailer The Good Glamm Group is engaged in several restructuring discussions with its lenders as it faces severe financial stress, cofounder and chief executive Darpan Sanghvi said in a recent social media post.As ET reported in June , the company had not paid salaries for two months in a row due to cash crunch and struggles with raising funds.Along with salary delays, full and final settlements for former employees have also not been cleared, leaving both current and ex-staff under significant financial strain.In the post, Sanghvi recounted that the company was on the verge of selling one of its brands at the end of its funding cycle, that would have secured enough funds for future. "Everything was done, but just before we could sign and secure Good Glamm, the CEO of the acquiring company stepped down at the last moment, and the deal fell through. It was a gut punch out of nowhere that sent us scrambling for funding and securing a lifeline."Since then, Good Glamm has been facing a chain reaction of financial hardships, starting with salary delays and operational payment disruptions that directly impacted business and made generating cash flows hard, and raising money even harder, Sanghvi wrote. He assured employees and investors that he would set things right.Good Glamm has been selling or exploring the sale of several portfolio brands in a bid to maintain liquidity and keep operations running during this turbulent period. The Mumbai-based company is evaluating the sale of its stake in personal care brand Organic Harvest back to the brand's founders.The uncertainty has also triggered a wave of employee exits. The latest high-profile departure came when Kartik Rao, the group's former chief people officer and a board member at WYN Beauty (a joint venture with Serena Williams), left to join AI-driven recruitment platform Vahan. ai.As part of its cost-cutting measures, the company shut down its Vasant Kunj office in New Delhi earlier this year. Operations temporarily moved to a location in Greater Kailash, but employees are now working remotely, one staffer confirmed.On April 11, ET reported that the company is in advanced talks to sell its media and influencer talent management arm, MissMalini Entertainment, to marketing agency Creativefuel.In February, Good Glamm sold feminine hygiene brand Sirona back to its original founders for around Rs 150 crore—well below the Rs 450 crore it had paid to acquire the brand. It also offloaded digital media subsidiary ScoopWhoop to Bengaluru-based meme marketing agency WLDD at a valuation of Rs 18–20 crore, a fraction of the Rs 100 crore it paid in 2021.The company has also explored selling stakes in other assets, including personal care brand The Moms Co and content platform POPxo.On January 29, representatives from investment firms Accel, Prosus Ventures, and Bessemer Venture Partners resigned from the company's board In March 2024, Good Glamm raised $30 million in a flat round from existing investors, including Warburg Pincus, Prosus Ventures, Bessemer, and Accel. The funding was intended to support working capital needs and bridge a larger round that is yet to materialise.Good Glamm was formed in 2021 through the merger of Darpan Sanghvi's MyGlamm, Priyanka Gill's POPxo, and Naiyya Saggi's BabyChakra.Over the past year, the company has witnessed a string of high-profile exits. In May 2024, Sukhleen Aneja, the chief executive of The Good Brands (Good Glamm's D2C vertical), left to join beauty and fashion retailer Nykaa. Gill became a venture partner at Kalaari Capital before launching her own lab-grown diamond brand, Coluxe, while Saggi is starting a new consumer electronics venture.
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