What led to the collapse of Good Glamm Group?

Darpan Sanghvi, the founder of Good Glamm Group, admits that the company's aggressive and rapid expansion strategy, including doing "too much, too fast, too big", was the root cause of its downfall.

How did lenders respond to Good Glamm Group's troubles?

Lenders, including Stride Ventures and Alteria Capital, have enforced their rights over Good Glamm's assets, leading to the individual sale of portfolio brands like MyGlamm, The Moms Co., and POPxo, effectively dismantling the company's house of brands business model.

What were the key factors that contributed to Good Glamm Group's collapse?

According to Darpan Sanghvi, the three main factors were: the company spreading itself too thin across multiple fronts, rushing execution, and scaling unproven bets too quickly.

Home / Business and Economy / Founder Admits Rapid Expansion Caused Good Glamm Group's Collapse

Founder Admits Rapid Expansion Caused Good Glamm Group's Collapse

4 Aug

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Summary

Founder Darpan Sanghvi says aggressive growth strategy led to downfall
Lenders enforced charges on individual brands, ending house of brands model
Sanghvi cites spreading too thin, rushed execution, and scaling unproven bets

Founder Admits Rapid Expansion Caused Good Glamm Group's Collapse

In a recent LinkedIn post, Darpan Sanghvi, the founder and CEO of the troubled content-to-commerce unicorn Good Glamm Group, has acknowledged that the company's aggressive and rapid expansion strategy was the primary reason for its collapse. Just days earlier, lenders had moved to enforce charges on Good Glamm's individual brands, effectively dismantling the so-called house of brands business model.

Sanghvi reflected on the company's downfall, stating that "Momentum is intoxicating. Until you drown in it." He pointed to three key factors that led to Good Glamm's demise: the company spread itself too thin across multiple fronts, rushed execution, and scaled unproven bets too quickly. The company had acquired 11 companies in rapid succession, entered five beauty and personal-care categories simultaneously, and attempted to build both a tech-led D2C business and a traditional offline presence, all of which caused scattered focus and unsustainable complexity.

The execution was similarly rushed, with ten acquisitions completed in just nine months, 50 offline stores opened within months, and 1,000 corporate employees hired in a single quarter. Meanwhile, the company scaled D2C orders from 1 lakh to 15 lakh per month without first optimizing unit economics, leading to bloated marketing costs and operational fragility.

As a result of the lenders' actions, Good Glamm's portfolio brands, such as MyGlamm, The Moms Co., Organic Harvest, Sirona, and POPxo, are now being sold individually, marking the end of the ecommerce company's attempt to blend content creation with beauty and personal-care commerce.

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