MyGlamm, a Mumbai-based direct-to-consumer brand of award winning European beauty products, announced that it has acquired women-focused content and influencer business POPxo. Financial details of the transaction were not disclosed.
Priyanka Gill, founder of POPxo, will join MyGlamm’s board and will be designated cofounder of the combined entity. The deal is expected to reduce MyGlamm’s customer acquisition costs, which is one of the highest cost centres for a direct-to-consumer brand. It will also net the venture a wider set of consumer data, which will help it launch new products more effectively.
“Till date, we only engaged users after acquiring them…. But POPxo will help us widen the top of the funnel,” Darpan Sanghvi, founder of MyGlamm, told ET.
“We have about 50 million women users across platforms, and close to 99% users are organic,” Gill said.
Once the synergies of the deal start playing out, the company plans to raise capital jointly in October. “We are nearing profitability and will engage with private equity investors once the merger traction starts reflecting,” Sanghvi said.
According to a report by consulting firm Kearney, startups in the beauty and personal care space have attracted significant investment over the last 18 months, with most players showing a three-to-five times growth in revenue through online-led distribution.
The two firms launched a hygiene care brand – Wipeout – leveraging the POPxo distribution network and MyGlamm’s manufacturing and distribution. The partnership helped scale the brand to Rs 2 crore in a month, which would have otherwise taken MyGlamm six months to achieve independently, Sanghvi said.
“Within the first week, we reached 8 million users…Wipeout alone can become a Rs 8 crore brand by October…the online buzz also helps create offline momentum,” Sanghvi said.
Founded in 2015, POPxo has raised more than $10 million from investors such as Kalaari, Chiratae and Neoplux.
MyGlamm Products was founded in October 2017 and has since raised $20 million from L’Occitane, Bessemer Venture Partners and the Mankekar Family Office.
MyGlamm uses a combination of technology, content and social media to allow consumers to not only discover its products but also create a rich, personalised, content and tutorial fuelled post purchase experience through its App.
–AN
HrNxt.com Newsdesk has researchers and writers with an excellent domain knowledge about the talent ecosystem, and the business environment. The team keeps a tab on the latest happenings in the ecosystem to bring most relevant news and insights for our readers. You can connect with our newsdesk at newsdesk@hrnxt.com.