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Good Glamm Group’s Bad Formula
- The Good Glam Group's many acquisitions over the past couple of years haven't been successful, and the company's finances are in bad shape as a result.
- Headline issues like layoffs, a drop in quality due to changes in product formulations, and senior executives leaving the company have reportedly played a part in this.
- Despite recent efforts to improve its standing, the company's raised eyebrows by reportedly looking to offload some of its acquired brands, while sources say various investors are considering funding the GGG with the stipulation that the company first pays off all its debt.
- Many of the Indian D2C brands that the GGG took over claim that the company focused more on its US launch than on nurturing them in their home country. There are also reportedly issues with corporate governance, growth projections, and oversight by the board.
- GGG is believed to be in talks with potential investors as it looks to raise between INR 150 Cr ($17 Mn) and INR 250 Cr ($28 Mn) at a post-money valuation of up to INR 1,000 Cr ($120 Mn). However, such a round would only place a small dent in the startup's debt of more than INR 450 Cr.
- This is not the first Indian firm to show unbridled interest in acquisitions throughout 2020 and 2021, only to come crashing down.
- Despite a lot of ambition, it seems the GGG is becoming known more as a problem than its many acquisitions and has yet to deliver on its goals to attract major investment.
- Given that many existing investors would have to continue holding some stake in the GGG, it is not a complete bust for them. However, the company still needs a significant turnaround to dispel the questions about its future.
- Good Glam Group's content-to-commerce play has failed, and its once-bullish omnichannel growth proposition has fizzled. Nonetheless, recent developments suggest the firm is still trying to hang on to some of its acquisitions, despite challenges with inventory and vendor dues.
- The recent exit of directors from its board, as well as questions about corporate governance and what the board was really up to, leave a lot of uncertainty about GGG's future.
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