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Good Glamm’s $30mn fundraise is a bandaid for a bullet wound

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Pranav Balakrishnan

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Pranav Balakrishnan

37 reads

The Good Glamm Group’s recent $30 million fundraise came as a surprise to many. But the new funding round, which was raised from the company’s existing investors, is not a cure to its problems. CXOs continue to leave and the company still lacks the capital to complete its 2021-22 acquisitions.

April 01, 2024

10 MINS READ

Key Takeaways

  • The Good Glamm Group has managed to raise $30 million from existing investors while maintaining its unicorn valuation
  • This comes as a welcome relief for the company, which owes as much as Rs 100 crore to vendors and creditors
  • But the new funding round does not mean the company is out of the woods, sources say
  • Good Glamm continues to see multiple CXO-level exits and must still complete the buyouts of brands it acquired in 2021-22

Having wandered the funding wilderness since November 2021, The Good Glamm Group’s recent $30-million fundraise came as a surprise to many. What was even more surprising, though, was that the content-to-commerce beauty startup managed to keep its earlier valuation of $1.25 billion. 

This funding did not come easy. Good Glamm has made multiple unsuccessful attempts over the past two years to raise a big-ticket funding round to extend its ever-shortening runway. In January, multiple sources told The CapTable that the company only had a few months of runway left, and was resorting to significant cost-cutting, including layoffs and reducing discounts, to survive.

At the time, founder Darpan Sanghvi insisted Good Glamm had the funds necessary to make it through 2024. The new fundraise—a bridge round from existing investors such as Warburg Pincus, Prosus Ventures, Accel Partners, and Bessemer Venture Partners—all but guarantees that.

“Many did not expect him (Sanghvi) to close this round,” a former executive associated with Good Glamm tells The CapTable. Indeed, multiple former and current company executives said that this funding round, especially since it preserves the company’s unicorn valuation, is impressive. However, they added, GoodGlamm is still not out of the woods.

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