Glam Quo­tient Up in this Co with L’Oc­c­i­tane Funds

French beauty prod­ucts maker leads $6-mil­lion fund­ing round

The Economic Times - - Disruption: - Mad­hav.Chan­chani @times­

DARPANSANGHVI Founder, MyGlamm This is the first in­stance glob­ally of a beauty com­pany in­vest­ing in a tech-en­abled startup in the space

Ben­galuru: French beauty prod­ucts maker L’Oc­c­i­tane is lead­ing a $6-mil­lion fund­ing round in on-de­mand beauty ser­vices startup MyGlamm, which will be the largest round of fund­ing in the sec­tor.

The fund­ing, which also saw par­tic­i­pa­tion from ex­ist­ing in­vestor Tano Cap­i­tal and Brand Cap­i­tal (part of the Times Group which pub­lishes The Eco­nomic Times), will help the Mum­bai-based startup ex­pand into new cities across the coun­try and even overseas. MyGlamm is also in talks to raise an­other $4 mil­lion from a large In­dian con­sumer in­ter­net com­pany, said founder Darpan Sanghvi.

“This is the first in­stance glob­ally of a beauty com­pany in­vest­ing in a tech-en­abled startup in the space,” said Sanghvi, who founded the com­pany last year. “The strate­gic sup­port of L’Oc­c­i­tane in our growth will also be a big dif­fer­en­tia­tor over the com­pe­ti­tion.”

Sanghvi also runs off­line beauty and wellness busi­ness un­der an­other com­pany called Sanghvi Brands, which has the mas­ter fran­chise of L’Oc­c­i­tane Spa and other high-end sa­lons and spas like War­ren Tri­comi, Elle Spa & Sa­lons and Holy­field Gyms.

Glob­ally, com­pa­nies like China's Heli­jia, which raised $50 mil­lion from IDG Cap­i­tal & Qim­ing Ven­ture as well as US-based GlamSquad, which raised $24 mil­lion from Soft­Bank Cap­i­tal & NEA have at­tracted fund­ing in this space.

But in In­dia, in­vest­ment in MyGlamm comes at a time when play­ers in the hy­per­local ser­vices space have found it hard to raise fol­low-on fund­ing. Com­pe­ti­tion in the space is now pri­mar­ily be­tween hor­i­zon­tals, which in­cludes Quikr and Sulekha along with new play­ers like House­joy and Ur­banClap.

Last year, Ur­banClap raised $25 mil­lion led by Besse­mer Ven­ture Part­ners while Ama­zon-backed House­joy has built a strong busi­ness in the space un­der a brand called Beau­tyjoy. Beauty has also emerged as the fo­cal point for com­pe­ti­tion be­tween these play­ers be­cause of high value and re­peat busi­ness. MyGlamm claims that it does 600 ser­vices a day in Mum­bai and Pune, with re­peats con­tribut­ing to more than 60% of the busi­ness. “Re­peat cus­tomers spend a lot more than new cus­tomers. New cus­tomers spend .₹ 1,500 on MyGlamm while re­peat cus­tomers spend .₹ 2,900,” said Sanghvi.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.