Good Glamm gets default notices from IAN, founders of Sirona, Moms Co
Founders of Sirona Hygiene and The Moms Co, as well as the Indian Angel Network (IAN), have filed default notices against content-to-commerce company Good Glamm Group which had acquired the two companies in 2021, two people aware of the development said. The founders, as well as IAN which had invested in Sirona, say Good Glamm has not paid the final payments due to them.
In 2021, Good Glamm had acquired feminine hygiene startup Sirona for ₹100 crore and mother and baby healthcare company The Moms Co for ₹500 crore. The founders and IAN have despatched the notices since they were not paid the last tranche of payments due in January, the people cited above said on condition of anonymity.
The Arc first reported that IAN has sent a ‘notice of default’ to the Good Glamm Group’s board.
Also read | Sukhleen Aneja set to exit Good Glamm Group
The Good Glamm Group had acquired more than 10 consumer goods and media startups between 2020 and 2021, including media platforms ScoopWhoop and MissMalini, besides rapidly growing its workforce and product portfolio. The people cited above said other founders have also approached Good Glamm over similar complaints of non-payment of dues totalling ₹130-160 crore. Mint could not confirm the names of any other founders who have approached Good Glamm.
The founders of Sirona and The Moms Co did not respond to queries. An executive of IAN, which sent the notice last week, declined to comment.
The Good Glamm Group said it is in “compliance with its contractual obligations and payouts to the promoters are in accordance with the contractual terms. We cannot comment on any specifics, since we are bound by confidentiality obligations.”
Also read | Good Glamm Group shifts gears: Cuts costs, eyes profitability ahead of IPO
The Good Glamm Group is backed by marquee investors such as Warburg Pincus, Prosus Ventures, L’Occitane, Bessemer Venture Partners, Accel, Amazon, Stride Ventures, Trifecta Capital, Ascent Capital, Alteria Capital, Tano Capital and the Mankekar Family Office. The company raised $30 million in March this year from existing investors.
According to a third person, Good Glamm plans to invest the new funds in the business, not make payments. “The board has chosen to stay completely silent and not engage with anyone on the matter. Several founders have written to the board starting January to try and resolve but the board is not responsive to anyone,” the person said on condition of anonymity.
Good Glamm operates across multiple verticals. The Good Brands Co comprises beauty and personal care brands such as MyGlamm, St Botanica, The Moms Co, Organic Harvest and Sirona, while The Good Media Co includes POPxo, ScoopWhoop, MissMalini, BabyChakra and Tweak India. The Good Creator Co serves as an influencer platform, alongside The Good Community.
Also read | Good Glamm, Serena Williams serve up beauty brand Wyn
Mint had earlier reported that the Good Glamm Group, a beauty products and content company, had slashed marketing spending, withdrawn discounts and downsized its workforce over the past year to achieve profitability ahead of its planned public market debut in 2025.
The company has also seen a series of exits in the past few months—Sukhleen Aneja, chief executive officer of The Good Brand Co, part of the Good Glamm Group, is set to leave the company in July. Earlier this year, Priyanka Gill, co-founder in charge of the group’s media business, left to join early-stage venture capital firm Kalaari Capital.
Last week, the Good Glamm Group announced a new organizational structure aimed at enhancing efficiency ahead of its planned public market debut in 2025.
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Published: 21 Apr 2024, 11:11 PM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.