The Good Glamm Group, a content-to-commerce platform, has fired 15% of its workforce, amounting to 150 employees, over the last 12-15 months, as per the company's statement.
The company's spokesperson has stated that The Good Glamm Group has placed a new organisational framework to streamline its operations, eliminating a series of redundancies over the last 15 months.
The company reckons the downsizing of workforce aligns with its strategy to cut costs and operate smoothly amid a tight funding scenario.
The Good Glamm Group has bought companies such as BabyChakra, Plixxo, PopXo, Tweak India, ScoopWhoop and The Moms Co.
As per the sources of Startup News India, the group's influencer marketing business PopXo has not been achieving the expected growth ever since its acquisition in 2020.
The Ken Report highlights the acquisitions made by the group hasn't yielded desired results as most of them have got stagnant.
The problem became more visible when the group co-founder Priyanka Gill stepped down from the active role to join as a venture partner at Kalaari Capital.
The company has also announced elevations within the group.
Manan Jain - Chief Operating Officer
Kartik Rao - Chief People Officer and SVP of founder initiatives
Ketan Bhatia - Brand Director
Avalok Langer - Chief Creative Officer
Ajesh Narayanan - Design Head
Ashish Jadhav - Head of Product
Ankita Bhardwaj - Director of Brand and Marketing
The group also announced appointing Kamal Lath as the new group CFO.
The move, as per the company, aligns with its strategy to become profitable in FY25.
The restructuring is happening at a time when the company looks to raise $70 million, of which it has already raised $30 million in the last month.
The Good Glamm Group's valuation, according to TheKredible, the startup data intelligence platform, stands at $1.26 billion after the last investment tranche. Post the $150 million round in November 2021, the company became a unicorn startup.
Even though The Good Glamm Group has not yet filed its financial results for FY23, its top line surged past INR 250 crore, witnessing a near 5X growth on a year-to-year basis compared to FY22. The company's losses also firmed up to INR 273 crore during the same period.
The company has ambitious IPO plans by Diwali 2025. It has announced a GlammSOP program to reward its top-performing employees. The program allows fast vesting of ESOPs at the Initial Public Offer (IPO).
What Does YFS Have to Say on The Glamm Group's Restructuring Exercise?
The problems are evident for The Glamm Group as many of its acquisitions haven’t performed as expected. The top line growth does inspire confidence for the company, which will hopefully make it profitable through a series of internal restructuring it made of late, reckons Your First Startup (YFS).