Good Glamm Group’s FY22 Revenue Crosses Rs 250 Cr But Losses Rise 6x
- ByStartupStory | March 17, 2023
Good Glamm Group, which hosts brands for content and commerce, has become one of the fastest-growing companies in the space with more than 5x growth in the past two fiscal years. However, losses also increased at a similar pace and surpassed Rs 270 crore in the fiscal year ending March 2022. As per the company’s consolidated financial statement filed with the Registrar of Companies, the Good Glamm Group’s revenue from operations surged 4.9x to Rs 240 crore in FY22, compared to Rs 49.3 crore in FY21.
The Good Glamm Group generates most of its revenue from the sale of products, followed by the sale of services, and it also earned affiliate and Adsense income of Rs 45 lakh during FY22. The company also earned finance income of Rs 12.7 crore during the last fiscal year, which took the overall revenue to Rs 252.7 crore in FY22, according to the company’s consolidated financial statement with the Registrar of Companies. The Good Glamm Group claims to be the largest D2C beauty platform, which consists of personal care brands such as MyGlamm, The Moms Co., St. Botanica, Sirona, and Organic Harvest, while its content portfolio includes POPxo, ScoopWhoop, BabyChakra, and MissMalini, among others. The company acquired most of these brands in the last few years.
In its financial statements, The Good Glamm Group noted that its makeup brand MyGlamm achieved a 3.8X growth through its content-creator-commerce strategy and acquiring multiple market-leading companies in the digital content and influencer spaces. As a result, the company’s customer base grew to over 4 million in FY22, up from 800,000 in FY21.
On the cost side, employee benefit expenses made up 28% of the total expenditure, ballooning 4.2X to Rs 146 crore during the year from Rs 34.9 crore in FY21. This cost also includes ESOP expense of Rs 22.86 crore during FY22.
During FY22, The Good Glamm Group witnessed a 5.4X increase in the cost of procuring products, which rose to Rs 93.8 crore from Rs 17.41 crore in FY21. The company’s standalone financials reflect an 8X surge in promotional costs, amounting to over Rs 110 crore in FY22, and warehousing and product delivery charges at around Rs 26 crore. The company also booked miscellaneous expenses of Rs 217.9 crore, which may include promotional, warehousing, and product delivery expenses. Overall, the company’s expenses rose 5.7X to Rs 519 crore in FY22 compared to Rs 91.2 crore in FY21, while its cash outflows also increased 7.7X to Rs 444 crore in FY22.
The Good Glamm Group’s spending spree resulted in a staggering 6X increase in losses to Rs 272.8 crore in FY22 compared to Rs 43.6 crore in FY21. However, the company has excluded exceptional items of Rs 16.3 crore from losses, which primarily comprises legal and professional expenses related to raising funds and acquiring new brands during FY22. Furthermore, its accumulated losses surged 2.3X to Rs 474 crore during the same period.
The company’s EBITDA margin and ROCE were recorded at -92.37% and -14.71%, respectively, in FY22. At the unit level, the Pune-based firm spent Rs 2.16 to earn a rupee of operating income. The Good Glamm Group achieved unicorn status in November 2021 following a successful Series D funding round that raised $150 million. With the backing of investors such as Amazon, Prosus Ventures, Accel, and Warburg Pincus, the company has now raised over $235 million.
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