The Mumbai-based agency, which obtained authorized notices from founders and their shareholders in startups it had acquired in 2021, has now initiated arbitration proceedings with the Indian Council of Arbitration (ICA) towards Indian Angel Community (IAN), individuals briefed on the developments informed ET.
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IAN, an investor in girls’s hygiene model Sirona that was purchased out by Good Glamm, had alleged that the Mumbai-based group and its board tried to cheat buyers. Good Glamm’s board has representatives from Accel, Bessemer Enterprise Companions, Prosus and Warburg Pincus.
Good Glamm is countering a default discover despatched by IAN difficult the alleged breach of contractual phrases and making defamatory feedback towards the corporate.
The newest motion from the Good Glamm follows IAN and founders of The Mothers Co and Sirona submitting default notices towards the corporate for not paying the ultimate due quantity from its 2021 acquisitions of those startups.
The Darpan Sanghvi-led firm is individually negotiating with founders of Sirona and the Mother’s Co the remaining dues even because it issued media statements saying it stays compliant with contractual obligations.
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Queries despatched to IAN and its cofounder Padmaja Ruparel didn’t elicit a response on the time of publishing. Good Glamm didn’t reply to queries.“The authorized motion is just towards IAN whereas the corporate is looking for an answer in session with founders of the acquired firms.” an individual conscious of the matter stated.
The corporate, which has made ten acquisitions, has cost obligations for these buyouts to the tune of Rs 150-160 crore, one of many individuals cited above stated.
The discover served to Good Glamm additionally flags the corporate making investments in overseas ventures as a substitute of clearing the dues for the startups it has acquired.
Portfolio of manufacturers
Good Glamm had acquired Sirona in 2021 for Rs 100 crore and child healthcare startup The Mother’s Co in the identical 12 months for round Rs 500 crore.
In Sirona, Good Glamm had acquired a partial undisclosed stake, with the remaining on account of be bought in 2023.
It had acquired 75% of The Mothers Co again then with an settlement to buy one other 15% in 2023 and the remaining this 12 months.
Within the direct-to-consumer (D2C) area, it had additionally acquired private care manufacturers Natural Harvest and St Botanica. Individually, the agency had acquired a number of startups within the media area together with Scoopwhoop, Popxo and Miss Malini.
Mounting troubles
The authorized bother at Good Glamm over cost of previous dues has come simply over a month after it closed a $30 million spherical from present buyers at a flat valuation. The corporate has additionally put in place a set of measures, together with shedding 150 individuals, to rein in its money burn.
Along with this, a number of prime stage executives have additionally stop or are on their manner out from the corporate, which sells magnificence merchandise beneath the Myglamm model.
This consists of chief monetary officer Piyush Kalra, who stop in March, and CEO of Good Manufacturers – its D2C vertical – Sukhleen Aneja, who’s on her manner out.
In February, cofounder Priyanka Gill joined funding agency Kalaari Capital as a enterprise companion. At Good Glamm, she stepped away from day-to-day operations.
On April 18, the Mumbai-based firm introduced the elevation of a few of its senior executives.
It appointed Manan Jain as group chief working officer, Kartik Rao as group chief individuals officer and senior vice chairman of founder initiatives, and Ashish Jadhav as group head of product.
