Darpan Sanghvi, the founder and CEO of Good Glamm Group, on Thursday acknowledged the company’s financial troubles and said that they are in talks for restructuring.
“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.
FE earlier this week reported that the company’s employees, laid off in January, are yet to receive their dues. The current employees have yet to receive their salaries for May and June.
Sanghvi said that the company was on the verge of selling one of its brands last year, hoping that it would provide them with the required money.
“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.
Since then, he added, the financial and operational troubles of the company have increased.
“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.
According to sources, the company is currently in talks to raise around Rs 250-300 crore at a sharp valuation cut.
Last valued at around $1.2 billion in March 2024, it is now raising the money at a valuation of around $120 million.
Moreover, it is also in talks to sell its media and influencer talent management arm MissMalini Entertainment and personal care brand Organic Harvest.
In February, Good Glamm sold feminine hygiene brand Sirona, which it had acquired for Rs 450 crore, back to its founders for Rs 150 crore.
It has also sold its digital media subsidiary ScoopWhoop to Bengaluru-based meme marketing agency WLDD at a valuation of Rs 18–20 crore, a fraction of the Rs 100 crore it paid in 2021.
Sanghvi formed Good Glamm in 2021 merging his MyGlamm with Priyanka Gill’s POPxo, and Naiyya Saggi’s BabyChakra.
Both Gill and Saggi have now moved on with Gill launching her own lab-grown diamond brand Coluxe and Saggi looking to start a new consumer electronics venture.