MyGlamm, a direct-to-consumer magnificence model in India that sells most of its merchandise by way of its personal web site, app and retail contact factors, stated on Monday it has raised $71.3 million in a financing spherical because the Mumbai-headquartered agency seems to be to scale its enterprise throughout the South Asian market.
The startup had raised $23.5 million in its four-times subscribed Sequence C financing spherical from Amazon, Ascent Capital and Wipro in March this yr. On Monday, it stated it has added a further $47.8 million as a part of the spherical — which is now closed.
Accel led the funding within the new tranche whereas current MyGlamm buyers — Bessemer Enterprise Companions, L’Occitane, Ascent, Amazon, Mankekar household, Trifecta and Strides Enterprise — additionally participated, Darpan Sanghvi, founder and chief government of MyGlamm, advised TechCrunch in an interview.
Sanghvi began MyGlamm in 2017 after pivoting his earlier enterprise. He recalled the wrestle he confronted elevating cash for a direct-to-consumer model, which weren’t as in style on the earth’s second-largest web market simply 5 years in the past. To make issues worse, MyGlamm was additionally among the many final direct-to-consumer startups to kick off its journeys on the time.
The startup as we speak operates as a home of manufacturers within the magnificence and private care areas. “We function throughout make-up, skincare, haircare, bathtub and physique, and private care. In contrast to different manufacturers, we now have been in a position to efficiently construct a grasp model throughout classes,” he stated over a video name.
“The explanation we now have been in a position to construct it is because we’re really direct to customers. This permits us to speak very immediately with them,” he stated, including that almost all different companies within the trade are too reliant on third-party marketplaces for his or her gross sales.
He attributed the latest progress of the startup, which sells over 800 SKUs throughout classes (up from 600 in March), to its newfound consumer acquisition technique. In August, the startup acquired POPxo, a startup that has constructed a neighborhood round content material, influencers and commerce and serves over 60 million month-to-month energetic customers.
“The content material to the commerce engine has grow to be our largest moat,” he stated. “We’re buying 250,000 new customers every month with out spending any actual cash.”
POPxo, which is run by Priyanka Gill, engages with almost 300,000 customers every month, gathering their suggestions and concepts for brand spanking new merchandise. Gill stated in a video name that “on this line of enterprise, CAC (value of buyer acquisition) is the sport and POPxo has solved this downside,” she stated, including that POPxo, which is run like a reasonably unbiased enterprise, is on monitor to achieve over 100 million customers by March subsequent yr.
The startup additionally has 15,000 point-of-sale contact factors within the bodily world throughout India. The bodily presence, which accounts for 40% of the income it generates as we speak, “has been essential to scale within the nation,” Sanghvi stated.
“We imagine that the time is ripe for constructing out digital-first CPG manufacturers with a deep give attention to content-to-commerce,” stated Anand Daniel, associate at Accel, in a press release.
“COVID has solely cemented this perception. The distinctive mixture of content material coupled with a compelling product line gave us the conviction to guide this spherical in MyGlamm. We’re excited to associate with Darpan, Priyanka and the MyGlamm staff and stay up for constructing out the next-generation CPG big,” he stated.
The startup plans to deploy the contemporary funds to increase its product growth, information science and expertise analysis groups. It’s also working to increase its offline presence and broadening the digital attain of POPxo.
The brand new funding comes at a time when Indian startups are elevating document capital and a handful of mature companies are starting to discover the general public markets. Final week, Tribe Capital’s funding crowned BlackBuck as India’s 16th unicorn this year, in comparison with 11 final yr and 6 in 2019. Meals supply startup Zomato made a stellar stock market debut last week and monetary providers companies MobiKwik and Paytm have additionally filed for his or her IPOs. Insurance coverage aggregator service PolicyBazaar and on-line magnificence e-commerce agency Nykaa are additionally anticipated to file their paperwork for an IPO within the coming weeks.