The Good Glamm Group’s management told the employees during a townhall on January 2 that salaries of a section were delayed as a potential funding round failed to materialise
On Thursday, the startup cleared the salaries of 85% of its current workforce
The startup is mulling options to bring in a strategic investor or divest one of the acquired brands (Sirona, The Mom’s Co, and Organic Harvest)
The Good Glamm Group has reportedly delayed salary payments of some of its employees as the content-to-commerce unicorn grapples with a funding crunch.
As per The Arc, the startup’s management told the employees during a townhall on January 2 that the salaries of a section were delayed as a potential funding round failed to materialise. As per the report, the top brass of the startup said that staffers, other than top employees, will be paid in batches starting January 6.
“We would like to kindly inform you that your salary disbursement will happen between 6th January to 31st January, 2025. Our aim is to ensure salary credit happens ASAP, and the HR team will be working actively to keep you updated throughout,” the startup said in an email sent to employees.
Meanwhile, sources told Inc42 that The Good Glamm Group cleared the salaries of 85% of its current workforce by Thursday (January 2).
The Arc report said that the full salaries were disbursed to employees earning INR 50,000 or less on Thursday while the workforce earning more than the threshold were paid only half of their pay. The startup has promised to pay the remaining amount by the end of the month.
Its leadership, comprising 15% of the total 300-odd workforce, will be paid out in the end, the report added.
Besides, The Good Glamm Group is also staring at mass layoffs. Its management, during the townhall, also reportedly hinted that it was looking at a restructuring exercise, including downsizing, to address cash flow challenges.
Cofounder and CEO Darpan Sangvi, who was also present at the town hall, underlined multiple measures to capitalise the company, including bringing in a strategic investor and divesting one of the acquired brands (Sirona, The Mom’s Co, and Organic Harvest).
The Good Glamm Group has been in the eye of a storm for some time now. Reeling under the impact of funding impact, the startup last year said that it laid off around 150 employees, or 15% of its workforce, over a period of 12 months as part of a restructuring exercise.
Quickly afterwards in April 2024, the unicorn’s CEO of D2C vertical The Good Brands Co, Sukhleen Aneja, also quit. In October, it was reported that The Good Glamm Group had put at least three of its companies, Organic Harvest, The Moms Co and Sirona, on sale to stay afloat.
The Good Glamm Group was founded in its current form in September 2021 after Sanghvi-founded D2C band MyGlamm
came together with Priyanka Gill-founded digital media platform POPxo and Naiyya Saggi-founded online parenting startup BabyChakra. Since then, the unicorn has acquired nearly a dozen brands, including ScoopWhoop, Organic Harvest, and Sirona.
The company has raised nearly $300 Mn in funding till date. In March last year, it raised $30 Mn from Warburg, Prosus, Accel and Bessemer at a valuation of $1.2 Bn.
Meanwhile, it is yet to file its financial statements for the fiscal year 2023-24 (FY24). The Good Glamm Group saw its consolidated net loss zoom over 153% to INR 917 Cr in FY23 from INR 363 Cr in the previous fiscal year. Revenue from operations jumped 185% to INR 603 Cr during the year from INR 211 Cr in FY22.
