Target Information

MyGlamm, a direct-to-consumer beauty brand founded in 2017 by Darpan Sanghvi and Priyanka Gill, has emerged as a leading player in the Indian beauty market. The company offers over 800 cruelty-free and vegan products across various categories, including makeup, skincare, and personal care. In July 2020, MyGlamm expanded its reach by acquiring POPxo-Plixxo, creating the largest content-to-community-to-commerce platform in India with a combined audience of 88 million female users and 1.5 billion annual video views.

With a strong digital-first strategy, MyGlamm also boasts a significant offline presence, operating over 10,000 points of sale across 70 cities in India. The company's innovative approach leverages both digital channels and brick-and-mortar stores to capture a diverse customer base.

Industry Overview

The beauty industry in India has been witnessing rapid growth, driven by increasing disposable incomes, rising consumer awareness, and changing beauty standards. With a burgeoning population and a young demographic, the demand for beauty and personal care products has escalated. The market is primarily catered to by both established brands and emerging startups, capitalizing on trends towards cruelty-free and sustainable products.

Moreover, the COVID-19 pandemic has accelerated the shift towards online shopping, making it essential for beauty brands to have a robust digital presence. This shift has enabled direct-to-consumer brands like MyGlamm to thrive by tapping into the growing consumer preference for convenience, personalized experiences, and access to a wider range of products.

India's beauty market is expected to continue its upward trajectory, with forecasts indicating a substantial increase in market size in the coming years. The emphasis on digital engagement and content-driven strategies will also play a critical role in shaping the future of the industry.

Rationale Behind the Deal

The recent funding round, in which MyGlamm raised Rs 355 crore led by Accel Partners, signifies the confidence investors have in the brand's growth trajectory and market potential. This investment comes on the heels of a previously successful Series C funding round that began in March, demonstrating a momentum that aligns with MyGlamm's strategic objectives.

The company plans to utilize the latest funding to enhance product development, invest in technology and data science research, and further expand its offline presence. These initiatives are designed to bolster its overall market share and fortify its position as a leading beauty brand in India.

Investor Information

Accel Partners is a well-established venture capital firm with a strong track record in building consumer internet businesses in India. Their experience includes investing in high-growth startups and helping them scale efficiently. The involvement of notable investors like Bessemer Venture Partners, L'Occitane, and Amazon in this round further reinforces the credibility of MyGlamm as a promising investment opportunity.

Accel’s Partner, Anand Daniel, expressed strong belief in the brand's potential, particularly in the realm of content-to-commerce, which aligns with the digital-first approach of modern consumer packaged goods (CPG) brands. Such insights and expertise from Accel are expected to enhance MyGlamm's operational capabilities and accelerate its growth plans.

View of Dealert

The recent funding round for MyGlamm can be viewed as a strategic move in an increasingly competitive beauty market. Given the brand's innovative product line and its strong online and offline presence, the investment appears to be well-timed and aligned with market trends emphasizing sustainability and ethical consumerism.

The shift towards digital-first CPG brands, especially in the beauty sector, indicates that MyGlamm is positioned to capitalize on the growing online consumer base. As indicated by the investors, the combination of compelling content and quality products further supports the belief that MyGlamm could see substantial growth in the coming years.

However, successful execution of the outlined strategies will be crucial. If MyGlamm can effectively leverage the new funds to enhance its digital capabilities and expand its product offerings, it has the potential to become a dominant player in the Indian beauty landscape. Overall, this investment by Accel and other partners may prove to be a wise decision, reflecting the evolving dynamics of the beauty industry.

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