MyGlamm, a direct-to-consumer beauty brand in India that sells most of its products through its website, app and retail touchpoints, has recently raised $71.3 million in funding. Following this fundraising round, the company is aiming to scale its business across the South Asian market.
The start-up had raised $23.5 million in its four-time subscribed Series C financing round from Amazon, Ascent Capital and Wipro in March 2021. It has recently added $47.8 million as part of the round.
Darpan Sanghvi founded MyGlamm in 2017 and today also has on its board POPxo founder Priyanka Gill as a co-founder after the acquisition of ‘India’s largest digital community of Women’ in 2020. The company wants to go beyond traditional online distribution and put forth MyGlammxo as a channel to get its products.
With WebEngage, MyGlamm currently has a 45% retention rate and is targeting Rs. 500 Crore Annual Recurring Revenue (ARR) by next year.
What propelled the creation of MyGlamm?
Started in 2017, the fashion-focused company found its roots in the goal of providing ‘glam quotient’ to its customers regardless of their busy days, without a compromise. MyGlamm is backed by one of Europe’s largest natural beauty companies, and it collaborates with international makeup artists and experts to create exciting innovations to achieve its goal of serving fashion clients with ease.
The start-up today operates as a house of brands in the beauty and personal care spaces. It works in the cosmetics, skin, hair, bath, body and personal care sectors. MyGlamm has been able to build this because the start-up is truly based on a direct to consumers (D2C) model. This allows it to communicate directly with customers. Most other firms operating in this sector are too reliant on third-party marketplaces for their sales.
How does MyGlamm plan to scale to the South Asian market?
The start-up plans to deploy the fresh funds to expand its product development, data science, and technology research teams. It is also working on expanding its offline presence and broadening the digital reach of POPxo.
By doubling down on its D2C cosmetic and personal care setup, MyGlamm plans to leverage its digital presence and community-driven growth model for global scalability. It is looking to bypass the traditional online distribution channels and offer the best products from its multiple touchpoints to consumers across the spectrum.
MyGlamm D2C – what can others learn from this upward multi-channel growth?
By its unique website portal, easy-to-use application, and an already growing offline presence via the 15000 over-the-counter sales points, MyGlamm has come a long way in acing the D2C race in the fashion industry. The start-up’s physical presence accounts for 40% of the revenue it generates today. The fact that the beauty and personal care sector remained one of the few sectors that did not face a slump during the pandemic also served the start-up’s growth.
The beauty and personal care market in India is increasing due to the boom of D2C. The industry is expected to grow with a compound annual growth rate of 4.23% between 2020 and 2025, with an estimated value of $8 billion. The rapid growth of the D2C beauty industry is in line with the growing penetration of internet services in India, the popularity of e-commerce and social trading platforms, and interactions on social media. This gives a sufficiently large base for new businesses to explore their growth avenues.