It is alleged by the founders and the IANS that The Good Glam Group didn’t pay the final payments due to them.
Content-to-commerce platform The Good Glam Group has received a default notice from the founders of start-ups Sirona Hygiene and The Moms Co. and Indian Angel Network (IAN). IAN is a “group of primarily Indian angel investors funding early-stage start-ups.”
Both Sirona Hugiene and The Moms Co. were acquired by The Good Glam Group in 2021. It is alleged by the founders and the IAN that The Good Glam Group didn’t pay the final payments due to them, as per a report by The Arc and the Mint.
In 2021, in a Rs 100 crore deal, The Good Glam Group acquired hygiene start-up Sirona. Sirona, which specializes in making menstrual products, saw The Good Glam Group having a majority share of the company. As per the Arc, while the Good Glam Group was supposed to acquire the final stake from investors, employers, and the founders by May, it didn’t make the required payment.
In the same year, the company acquired The Moms Co., a company that sells natural products for babies and mothers, for an undisclosed amount. In 2023, The Good Glam Group acquired a 90 percent stake in the company as the founders made an exit.
Speaking to the Economic Times, Darpan Sanghvi, cofounder and CEO of The Good Glamm Group, said, “We have taken our share up to 90% now. The remaining 10% we will buy from them next year. We want them to continue on the board and keep guiding (The Moms Co.). The same path continues with other brands like Sirona and Organic Harvest as well.”
However, The Moms Co. is yet to receive a payment of Rs 40 crore from The Good Glam Group (10 per cent of the payment due).
A source told The Arc, ““Good Glamm is cash-strapped. The board is trying to renegotiate the payout terms into debt since the company does not have that kind of liquidity now. While the founders of Moms Co. and Sirona may still be able to take up this offer, how a SEBI-regulated fund deals with this needs to be seen.”
Meanwhile, The Good Glam has reportedly maintained that it complies with the contract's obligations. Recently, as part of its restructuring exercise, The Good Glam Group also fired 150 of its employees. The company also recently saw some top exits, the latest being the chief executive officer (CEO) of Good Brand Co. (part of the Good Glam Group), Sukhleen Aneja.