Good Glamm Group to be dismantled as lenders enforce brand-wise asset sale

New Delhi: The Good Glamm Group is being dismantled as lenders move to sell its portfolio of brands individually, signalling the collapse of its ambitious content-to-commerce model. 

The decision follows months of financial distress and failed restructuring efforts, as announced by founder and CEO Darpan Sanghvi in a candid LinkedIn post on July 23, 2025.

Founded in 2015 by Sanghvi, Priyanka Gill, and Naiyya Saggi, Good Glamm rose to prominence with a $1.26 billion valuation in 2021, becoming one of India’s first beauty-commerce unicorns. 

The company built a house of brands through aggressive acquisitions, including MyGlamm, Sirona, The Moms Co., Organic Harvest, St. Botanica, POPxo, and ScoopWhoop, backed by high-profile investors like Warburg Pincus, Prosus Ventures, and Bessemer Venture Partners. However, mounting debt, high operational costs, and a failure to achieve profitability have led to its unravelling.

After exploring options such as refinancing, partial brand sales, and strategic investments, Good Glamm’s lenders, including Stride Ventures, Trifecta Capital, Alteria Capital, HDFC Bank, and HSBC, have enforced their rights to sell the group’s brands separately. “There will no longer be a group-wide solution, which will allow all the brands to continue under a single umbrella,” Sanghvi wrote. “Instead, the brands will be sold one by one, and there will be new individual owners for each.”

The company’s financial troubles intensified after a critical acquisition deal fell through in early 2025, when the CEO of the acquiring company stepped down, leaving Good Glamm without a vital funding lifeline. This triggered cash flow issues, resulting in delayed salary payments for April and May 2025 and unpaid dues to vendors and former employees. The group’s valuation has plummeted to approximately $120 million, a 90% drop from its peak, with liabilities estimated at Rs 250 crore.

Good Glamm has already sold several brands at significant losses. In February 2025, it divested feminine hygiene brand Sirona to its original founders for Rs 150 crore, a third of the Rs 450 crore acquisition cost in 2023. Digital media platform ScoopWhoop was sold to Bengaluru-based WLDD for Rs 18–20 crore, down from Rs 100 crore in 2021, and MissMalini Entertainment was offloaded to Creativefuel for Rs 4 crore. 

The company is now exploring sales of remaining brands, including The Moms Co., Organic Harvest, and POPxo, though analysts predict these may fetch low valuations due to market conditions and operational challenges.

Industry insiders attribute Good Glamm’s collapse to a flawed acquisition-heavy strategy modelled after the US-based Thrasio, which prioritised scale over operational synergy and profitability. Centralised operations led to inefficiencies, with lapses in product development and marketing budgets weakening brand performance. Negative customer feedback, particularly for brands like The Moms Co. and Organic Harvest, has been linked to alleged changes in product formulations.

The company also faced significant leadership turnover. Sukhleen Aneja, CEO of its D2C vertical, left for Nykaa in May 2024, while chief people officer Kartik Rao joined Vahan.ai. 

Co-founders Priyanka Gill and Naiyya Saggi exited to pursue new ventures, and board members from Accel, Prosus Ventures, and Bessemer Venture Partners resigned in January 2025, reflecting dwindling investor confidence.

In his LinkedIn post, Sanghvi took full responsibility for the company’s failures, stating, “The decisions, the choices that didn’t work, the risks that didn’t pay off… this is on me.” 

He pledged to allocate 25% of his future post-tax earnings from salaries or equity gains to settle employee dues if brand sales fail to cover outstanding payments. Additionally, he announced plans to establish a “Good Glamm Restitution Fund” within 60 days, backed by equity from his next venture, to address vendor and shareholder losses.

Sanghvi is working with lenders and prospective buyers to facilitate employee transitions and clear dues, emphasising his commitment to resolving the crisis. “I will not stop until I set things right for every past and present employee, lender, vendor, and shareholder,” he wrote.

Good Glamm’s collapse raises questions about the sustainability of the Thrasio model in India, where high burn rates and integration challenges have proven difficult to overcome. 

As the company’s brands are sold off, the industry is watching to see if they can regain their footing under new ownership. For now, Good Glamm’s dismantling serves as a stark reminder of the risks of prioritising rapid growth over financial discipline in the competitive market.