In an all-cash acquisition worth Rs 100 crore, the Good Glamm Group, which owns the MyGlamm brand of beauty and personal care goods, acquired an undisclosed majority share in feminine hygiene startup Sirona.
The early investors of Sirona, which develops feminine hygiene products such as menstrual cups, have exited. In contrast, Darpan Sanghvi, founder and CEO of The Good Glamm Group has committed a further Rs 100 crore ($13.5 million) of primary investment in the company.
“Over the next three years, Good Glamm will complete the purchase of further stake to gain 100% control over the entity,” Sanghvi said.
To join the coveted unicorn club of privately held companies worth at least $1 billion, Good Glamm Group just raised $150 million in a fundraising round headed by Prosus (previously Naspers). Warburg Pincus, L’Occitane, Bessemer Venture Partners, Accel, Amazon, and Ascent Capital are among the company’s investors.
Sirona manufactures feminine hygiene products, such as herbal pain relief patches, degradable sanitary pads, and menstrual cup kits, launched in 2014 by Deep and Mohit Bajaj. PeeBuddy, a stand-and-pee device for women, is also available. In April, NB Ventures and IAN Fund co-led a $3 million Series A investment round for the startup. For the past three years, Sirona has been profitable.
“We are growing steadily and are currently clocking Rs 75 crore of revenue run rate,” said Deep Bajaj, founder, and CEO of Sirona Hygiene. Within three years, the company plans to reach a revenue of Rs 500 crore.
“The content to commerce playbook that Good Glamm has will unlock significant value in this segment, which continues to be underserved and holds a lot of growth potential. We believe with content and influencer networks, the women’s hygiene category can grow exponentially,” Sanghvi said.
With this acquisition, good Glamm will enter the feminine hygiene market and plan to expand it. Since the beginning of the year, it has purchased five brands: Baby Chakra, The Moms Co, ScoopWhoop, and MissMalini Entertainment. The corporation is currently generating $150 million in annual revenue.
Purplle, Sugar Cosmetics, Mamaearth, and Plum Cosmetics are examples of new-age, digital-first personal care and beauty firms that have piqued the interest of risk investors. At the same time, Nykaa, the most prominent player, floated last month with a market capitalization of over Rs 1 lakh billion. The Covid-19 outbreak has benefited online-only brands’ sales by hastening consumer adoption of digital technology and encouraging them to acquire more products.