Direct-to-consumer beauty brand MyGlamm plans to more than double its offline points of sale to 10,000 as it is targeting a 300% revenue growth in the current year driven mainly by product portfolio expansion and increasing demand from tier 2 and 3 cities.
“We are in an exciting place where we are growing. January to December 2019, we grew about 400%,” Darpan Sanghvi, Founder & CEO, MyGlamm told The Hindu.
“We had the same plans for 2020, but the pandemic came. Now, we are now back at the same kind of growth rates we had in 2019. We are seeing ourselves grow at least about another 3x from January to December 2021. That’s our target for the company for 2021,” he said.
The three-year company is in the middle of its Series C funding of about ₹110 crore. “We raised our ₹100 crore Series B fund last year led by Bessemer Venture Partners,” he said.
“We hope to close the series C raise of ₹110 crore soon. Because we have become profitable as a company, we don’t require too much capital. The capital we require is primarily for inventory build-up, working capital needs and offline expansion,” Mr. Sanghvi added.
He added that the company’s current annualised revenue run rate is ₹200 crore, while the pre-COVID-19 number was ₹140 crore. “So, we are already close to 50% over pre-COVID-19 levels.
“October-December quarter will be our first profitable quarter at MyGlamm. The major factors driving our growth are product portfolio expansion, the category growing, POPxo, driving digital growth for us and tier-two and tier three driving offline,” he said.
The company had recently acquired the online community for women POPxo, which has 88 million annual users.
My Glamm currently has four sub-brands, and will soon launch another new sub-brand in the personal care category. “Today, we have 4,000 points of sale across 50 cities of India. In 2021, these 50 cities will become 100 cities and points of sale will go from 4,000 to over 10,000.”
Asked about what will drive the growth, Mr. Singhvi said, “The make up market is growing about 18 to 20% year on year. So, the pie is becoming bigger and it’s not that we are taking market share from others. Online is growing at 35-40% year-on- year for beauty.”
He added that offline sales, particularly in tier 2 and tier 2, has really picked up mainly as a lot of the young professionals have gone back to their homes during the lockdown and COVID-19 onset was lower in these cities.
MyGlamm also launched its first experience beauty store in the country during COVID-19. “The experience store, if it’s wildly successful in Mumbai, we might do one more Delhi. But that is about it. The experience story is not going to be the offline strategy.”
