Mumbai-based beauty marketplace MyGlamm has raised $14.47 Mn (INR 100 Cr) in a funding round led by Bessemer Venture Partners and the Mankekar family office.
Existing investor beauty and cosmetics brand L’Occitane also participated in the round. With this, the company has been valued at $72.35 Mn (INR 500 Cr). Further, early investor Tano Capital will be selling most of its stake for INR 30 Cr. They will be making a 3x return on their investment.
Bessemer MD Vishal Gupta, will be joining the board of MyGlamm. The funding will be used to launch operations in the Middle East and Southeast Asia this year. Prior to this round, the company has raised $11.3 Mn.
Related Article: Funding Galore: Indian Startup Funding Of The Week [24-29 June]
Founded in July 2015 by Darpan Sanghvi, MyGlamm is a beauty products marketplace. The company is betting on celebrity collaborations where it has tied up with Manish Malhotra, Daniel Bauer, Sidharth Malhotra and more.
“Globally, a large number of businesses are going to direct-to-consumer, for which the biggest reason is to establish a connect with users to get feedback, serve them better and giving the best experience. Beauty is a very content driven category and having an omni-channel approach is the best,” said Vishal Gupta, MD, Bessemer Venture Partners.
The company has an INR 60 Cr annual run rate, with customer retention rates of over 50%.
As the fashion and beauty industry expands its horizons to include newer products, expand grooming range to men as well, the cosmetics market has been at an all-time high. The popularity for branded products, especially promoted by celebrities and stylists, has become the new demand.
The country’s cosmetics and cosmeceutical market is expected to register annual growth of 25% touching $20 Bn by 2025. A report claimed that the Indian beauty industry is looking towards a market value of $12.4 Bn (INR 80,000 Cr) by 2017-2018 and is expected to grow at a rate of 15% to 20%.
The market is seeing growing interest in beauty marketplaces such as Nykaa, Purplle, NewU etc and even scouting for offline expansion.