Direct-to-consumer beauty brand MyGlamm on Tuesday said it has acquired online parenting platform BabyChakra, and will invest Rs 100 crore in building the country's largest mother-baby content-to-commerce platform over the next three years.
The company, however, did not disclose the financial details of the BabyChakra acquisition.
MyGlamm ventures into mom-babycare segment
BabyChakra will continue to work as an independent entity under the MyGlamm umbrella and continue its content community strategy and will build out its own mom-baby category products with the product partnership of MyGlamm, Darpan Sanghvi, founder and CEO of MyGlamm said.
"With this acquisition, MyGlamm ventures into the Mom-Babycare segment and will continue to expand on their 3C approach and become the largest Content-Community-Commerce company in South Asia along with POPxo and BabyChakra," he added.
With the BabyChakra acquisition, MyGlamm will now cover the full spectrum of a woman's needs: This is a unique position for the company to be in, he said.
Naiyya Saggi to join MyGlamm group
Naiyya Saggi, founder and CEO of BabyChakra, will join the MyGlamm group as co-founder and President and will spearhead the ''Mom-Baby'' vertical while also building out the overall Community vertical for the Group.
Saggi will also join the MyGlamm Board as a Board member. BabyChakra's team of 35 employees has also been onboarded as part of the transaction.
Naiyya Saggi, Founder & CEO, BabyChakra and Co-Founder President, MyGlamm, “While the Indian Mom and BabyCare market is large and rapidly growing at 15-20 percent CAGR, Indian moms and kids still need products that are truly personalised to their needs. I am also very excited to contribute to the group by leading its overall efforts at building out engaged Communities based on a data and product first approach."
In July, MyGlamm had announced a Rs 530 crore fundraise from Accel and others. MyGlamm, which had acquired POPxo in August last year, had about 10,000 points-of-sale across 70 cities in India at the end of FY''21.
The company is looking at expanding its network to 35,000-40,000 points-of-sale across 100 cities by December this year.
Its current revenue run rate is at about Rs 480 crore, and this is expected to grow to Rs 750 crore by the end of the year.
MyGlamm, POPxo, and BabyChakra cumulatively represent a community of over 80 million women and have over 220,000 influencers on their platforms.
"The baby and mom personal care market (i.e, hair and skin cleansing, diaper and maternity personal care) is $3 billion, growing rapidly at 14 per cent CAGR but category penetration is low at only 15 per cent. Moreover, online commerce, while growing rapidly, is still only at 10 per cent while offline is at 90 per cent," Saggi said.
She added that women are coming online rapidly, and for many, their first port of call is childcare and pregnancy information and communities.
"Moms are an especially important constituent since they make 85 per cent of all consumer and healthcare choices and purchase decisions for their families. When we partner with a mom, we partner with a whole family," she said.
Investment to be used to build tech, says Saggi
Talking about the Rs 100 crore investment, Saggi said the money will be invested in building tech and products for (more intelligence and personalised experience) and growing the direct-to-consumer (D2C) portfolio and distribution.
"We are ramping up our D2C journey with the MyGlamm partnership and in the next 3 years, our goal is to reach a Rs 500 crore revenue run rate for our products.
"Over the 8-12 months itself, we are gearing up to launch a portfolio of 80-plus mom and baby personal care products with 50 per cent of them launching this year itself," she said.
In the first year, the revenue run rate being targeted is Rs 70 crore.
"Going forward, we will continue making investments in growing our community and tech stack while launching our range of personal care products and will focus on EBITDA profitability in year 2 of product launches," Saggi said.
(With PTI inputs)
