Good Glamm acquired many companies, the founders of which have sent notices as they have not received the last instalment of payments due in January
The founders of Sirona Hygiene and The Moms Co, along with the Indian Angel Network (Ian), have issued default notices against content-to-commerce company Good Glamm Group, which acquired the two companies in 2021, according to a leading media house. They claim that Good Glamm has failed to make the final payments owed to them.
In 2021, Good Glamm acquired Sirona, a feminine hygiene startup, for Rs 100 crore and The Moms Co, a mother and baby healthcare company, for Rs 500 crore. The founders and Ian have sent the notices as they have not received the last instalment of payments due in January, as per the report.
A leading media house initially reported that IAN has sent a ‘notice of default’ to the board of the Good Glamm Group.
Between 2020 and 2021, the Good Glamm Group acquired over 10 consumer goods and media startups, including media platforms ScoopWhoop and MissMalini, while also expanding its workforce and product range. The report mentioned that other founders have also raised similar complaints of unpaid dues amounting to Rs 130-160 crore.
The Good Glamm Group stated that it is in compliance with its contractual obligations and payouts to the promoters are in accordance with the contractual terms. We cannot comment on any specifics, since we are bound by confidentiality obligations.
Backed by esteemed investors such as Warburg Pincus, Prosus Ventures, L’Occitane, Bessemer Venture Partners, Accel, Amazon, Stride Ventures, Trifecta Capital, Ascent Capital, Alteria Capital, Tano Capital and the Mankekar Family Office, the Good Glamm Group raised USD 30 million in March this year from existing investors.
According to another individual to the media house, Good Glamm intends to utilise the new funds for business investments rather than making payments. The board has opted to remain completely silent and unresponsive to anyone regarding the matter. Several founders have reached out to the board since January to resolve the issue, but there has been no response, the person said on condition of anonymity.
Operating across various verticals, The Good Brands Co includes beauty and personal care brands such as MyGlamm, St Botanica, The Moms Co, Organic Harvest and Sirona, while The Good Media Co comprises POPxo, ScoopWhoop, MissMalini, BabyChakra and Tweak India. The Good Creator Co functions as an influencer platform, alongside The Good Community.
The company has also witnessed several departures in recent months-Sukhleen Aneja, CEO of The Good Brand Co, is set to leave in July, while earlier this year, Priyanka Gill, co-founder overseeing the group’s media business, departed to join early-stage venture capital firm Kalaari Capital.
Last week, the Good Glamm Group announced a new organisational structure aimed at enhancing efficiency ahead of its planned public market debut in 2025.
