The Good Glamm Group’s move comes at a time when The Moms Co’s founders, Malika and Mohit Sadani, have reportedly stepped away from day-to-day operations
The Moms Co’s founders will remain on the board and will have the option to divest the remaining 10% stake next year
The Good Glamm Group’s founder and CEO Darpan Sanghvi said that the unicorn will follow the same route for its other acquisitions – Sirona and Organic Harvest
Content-to-commerce unicorn The Good Glamm Group has reportedly increased its stake in The Moms Co, a D2C mother-and-baby care products brand, to 90% from 75%.
The Good Glamm Group’s move comes at a time when The Moms Co’s founders, Malika and Mohit Sadani, have stepped away from the day-to-day operations, ET reported.
The content-to-commerce unicorn acquired The Moms Co reportedly for INR 500 Cr in 2021, its biggest acquisition ever.
According to the ET report, the D2C brand has doubled its monthly revenue run rate to around INR 24 Cr.
Sukhleen Aneja, CEO of the unicorn’s subsidiary Good Brands Co, will now lead The Moms Co. However, the founders of The Moms Co’s will remain on the board and will have the option to divest the remaining 10% stake next year.
Malika and Mohit had not been actively involved with the D2C brand’s operations since the middle of last year. Their exit also includes a non-compete clause for the next three years, a person aware of the matter told ET.
Darpan Sanghvi, cofounder and CEO of The Good Glamm Group, was cited as saying that the content-to-commerce unicorn plans to buy the remaining 10% stake from the founders while keeping them on the brand’s board. “The same path continues with other brands like Sirona and Organic Harvest as well,” Sanghvi added.
The Good Glamm Group invested INR 100 Cr in Sirona – a feminine hygiene brand – in December 2021, while it acquired a majority stake in beauty D2C brand Organic Harvest in January 2022.
The unicorn recently acquired a 51% stake in actor Twinkle Khana’s women-focused content platform, Tweak India, in a cash and stock deal.
The Good Glamm Group is looking to consolidate its acquisitions under its three arms – Good Brands Co, Good Media Co and Good Creators Co, which are led by Sukhleen Aneja, Priyanka Gill and Sachin Bhatia, respectively.
It has parked its portfolio of D2C brands in the beauty and personal care category under Good Brands Co, including The Moms Co, Sirona and Organic Harvest. Similarly, PoPXo, MissMalini and BabyChakra are under Good Media Co. Lastly, social media influencer properties like Plixxo, Winkl, Vidooly and Bulbul have been parked under Good Creators Co.
Of late, many D2C brands have taken the acquisition route, as a prolonged funding winter has reduced chances to raise funds and continue operating independently. This has prompted many Thrasio-style startups and traditional conglomerates alike to acquire multiple D2C brands.
D2C rollup ecommerce startup GOAT Brand Labs acquired Chumbak and four other D2C brands in January this year. The D2C aggregator claimed that it was also in discussions with about 8-10 D2C brands, having already built a portfolio of 20 D2C brands.
In the same month, FMCG major ITC said it would acquire the D2C brand Yoga Bar in multiple tranches over the next three to four years.