Good Glamm Group, the parent company of direct-to-consumer (D2C) beauty and personal care brand MyGlamm, has acquired new-age media startup ScoopWhoop Media in an all-cash deal, said sources with direct knowledge of the transaction.
Darpan Sanghvi, the co-founder and chief executive of Good Glamm Group, later confirmed the development told ET. Sanghvi said the group will enter the men’s grooming space with the acquisition and is looking to invest Rs 500 crore over the next two years.
The financial terms of the deal MyGlamm-ScoopWhoop deal were not disclosed.
“This acquisition fits perfectly into our content-to-commerce playbook. Content is difficult to build, and this acquisition solves that,” Sanghvi told ET. “We are in talks with a few brands in the male grooming space to acquire and invest in them.” ScoopWhoop is the fourth big buyout for the group after The Moms Co, BabyChakra and content and commerce platform POPxo, which it acquired last year.
Founded in 2013 by Sattvik Mishra, Rishi Pratim Mukherjee and Sriparna Tikekar, the ScoopWhoop is backed by Kalaari Capital, which invested $4 million in the company in 2015.
“We have been platform-agnostic and have decided to be where the users are. Across Instagram, Facebook, ShareChat, YouTube, as well as our own website, we have seen monthly user numbers rising manifold,” Mishra said.
Being part of a larger group gives the digital media entity an opportunity to build its content platform at scale. ScoopWhoop said it has over 1.5b billion impressions every month and over 100 million users.
All investors, except Kalaari Capital, will exit Scoopwhoop. Kalaari will invest further in the Good Glamm Group, Sanghvi said.
Last month, Good Glamm acquired D2C mother and baby care brand The Moms Co, valuing it at Rs 500 crore, making it the largest M&A deal in the buzzy beauty and personal care segment, ET reported on October 6.
Sources in the know said Good Glamm was also looking to raise fresh financing, the details of which have yet to be firmed up. “The company is looking at raising a larger round to build a war chest for its inorganic plans. There is considerable inbound investor interest,” one of the people with knowledge of the development said.
Sanghvi, however, denied it was in talks to raise capital.
Last month, as part of its extended Series C round, Good Glamm picked up an additional Rs 255 crore, in a mix of debt and equity, taking the round size to Rs 755 crore ($100 million). It counts funds such as Ascent Capital, Wipro, and Amazon as investors.
The company aims to create a larger “Unilever-style” umbrella of FMCG brands. “We are looking at making four to six acquisitions across categories such as Hygiene, Bath and Body, Skin, Hair and Naturals over the next 90-180 days,” Sanghvi told ET last month. It has earmarked $100 million in cash for such opportunities.
Source: Economic Times