Founder and CEO Darpan Sanghvi admitted that the Good Glamm Group is facing financial difficulties and said the company has initiated discussions for a restructuring plan.
“I’m doing everything in my power to bring this to a resolution,” Sanghvi said in a LinkedIn post shared on the company’s account.
“There are several restructuring discussions underway in conjunction with our lenders,” he added.
Earlier this week, sources reported that employees laid off in January by the company are still awaiting their pending dues. Additionally, the company has not yet paid its current staff their salaries for May and June.
Sanghvi mentioned that the company was close to selling one of its brands last year in the hope that the deal would generate the necessary funds.
“Everything was done, but just before we could sign and secure Good Glamm, the CEO of the acquiring company stepped down at the last moment, and the deal fell through,” he said.
He added that since then, the company’s financial and operational challenges have only worsened.
“Since then, we have been trying everything possible to generate cash to pay our employees, and also keep the business operational, so that we are able to raise funds to bring the business back on its feet,” he said.
Sources indicate that the company is currently in discussions to raise approximately ₹250–300 crore, but at a significantly reduced valuation. Investors had valued the company at around $1.2 billion in March 2024, but they now expect to carry out the new funding round at a sharply reduced valuation of just $120 million.
Additionally, the company is in negotiations to sell its media and influencer talent management division, MissMalini Entertainment, along with its personal care brand, Organic Harvest.
Back in February, Good Glamm sold its feminine hygiene brand Sirona—originally acquired for ₹450 crore—back to its founders for ₹150 crore.
Additionally, the company is in negotiations to sell its media and influencer talent management division, MissMalini Entertainment, along with its personal care brand, Organic Harvest.
Back in February, Good Glamm sold its feminine hygiene brand Sirona—originally acquired for ₹450 crore—back to its founders for ₹150 crore.
