{"id":34123,"date":"2024-04-24T08:01:32","date_gmt":"2024-04-24T08:01:32","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/04\/24\/good-glamm-initiates-arbitration-against-portfolio-company-investor-ian-sources\/"},"modified":"2024-04-24T08:01:32","modified_gmt":"2024-04-24T08:01:32","slug":"good-glamm-initiates-arbitration-against-portfolio-company-investor-ian-sources","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/04\/24\/good-glamm-initiates-arbitration-against-portfolio-company-investor-ian-sources\/","title":{"rendered":"Good Glamm initiates arbitration against portfolio company investor IAN: sources"},"content":{"rendered":"
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The legal battle between content-to-commerce unicorn Good Glamm<\/a> group, its portfolio firms and their investors has intensified amid an ongoing dispute between the various stakeholders.
The Mumbai-based firm, which received legal notices from founders and their shareholders in startups it had acquired in 2021, has now initiated arbitration<\/a> proceedings with the Indian Council of Arbitration (ICA) against Indian Angel Network (IAN<\/a>), people briefed on the developments told ET. <\/p>\n
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IAN, an investor<\/a> in women\u2019s hygiene brand Sirona that was bought out by Good Glamm, had alleged that the Mumbai-based group and its board attempted to cheat investors. Good Glamm\u2019s board has representatives from Accel<\/a>, Bessemer Venture Partners, Prosus and Warburg Pincus. <\/p>\n

Good Glamm is countering a default notice sent by IAN challenging the alleged breach of contractual terms and making defamatory comments against the company.<\/p>\n

The latest action from the Good Glamm follows IAN and founders of The Moms Co and Sirona filing default notices against the company for not paying the final due amount from its 2021 acquisitions of these startups.<\/p>\n

The Darpan Sanghvi-led company is separately negotiating with founders of Sirona and the Mom\u2019s Co the remaining dues even as it issued media statements saying it remains compliant with contractual obligations. <\/p>\n

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Queries sent to IAN and its cofounder Padmaja Ruparel did not elicit a response at the time of publishing. Good Glamm did not respond to queries.\u201cThe legal action is only against IAN while the company is trying to find a solution in consultation with founders of the acquired companies.\u201d a person aware of the matter said.<\/p>\n

The company, which has made ten acquisitions, has payment obligations for these buyouts to the tune of Rs 150-160 crore, one of the persons cited above said.<\/p>\n

The notice served to Good Glamm also flags the company making investments in foreign ventures instead of clearing the dues for the startups it has acquired.<\/p>\n

Portfolio of brands<\/strong>
Good Glamm had acquired Sirona in 2021 for Rs 100 crore <\/a>and baby healthcare startup The Mom\u2019s Co in the same year for around Rs 500 crore.<\/a> <\/p>\n

In Sirona, Good Glamm had acquired a partial undisclosed stake, with the remaining due to be purchased in 2023.<\/p>\n

It had acquired 75% of The Moms Co back then with an agreement to purchase another 15% in 2023 and the remaining this year. <\/p>\n

In the direct-to-consumer (D2C) space, it had also acquired personal care brands Organic Harvest<\/a> and St Botanica. Separately, the firm had acquired multiple startups in the media space including Scoopwhoop, Popxo and Miss Malini.<\/p>\n

Mounting troubles<\/strong>
The legal trouble at Good Glamm over payment of past dues has come just over a month after it closed a $30 million round from existing investors at a flat valuation. <\/a>The company has also put in place a set of measures, including laying off 150 people, to rein in its cash burn.<\/a><\/p>\n

In addition to this, several top level executives have also quit or are on their way out from the company, which sells beauty products under the Myglamm brand. <\/p>\n

This includes chief financial officer Piyush Kalra, who quit in March, and CEO of Good Brands \u2013 its D2C vertical \u2013 Sukhleen Aneja, who is on her way out.<\/p>\n

In February, cofounder Priyanka Gill joined investment firm Kalaari Capital <\/a>as a venture partner. At Good Glamm, she stepped away from day-to-day operations. <\/p>\n

On April 18, the Mumbai-based company announced the elevation of some of its senior executives. <\/p>\n

It appointed Manan Jain as group chief operating officer, Kartik Rao as group chief people officer and senior vice president of founder initiatives, and Ashish Jadhav as group head of product.<\/p>\n<\/div>\n


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The legal battle between content-to-commerce unicorn Good Glamm group, its portfolio firms and their investors has intensified amid an ongoing dispute between the various stakeholders. The Mumbai-based firm, which received legal notices from founders and their shareholders in startups it had acquired in 2021, has now initiated arbitration proceedings with the Indian Council of Arbitration […]<\/p>\n","protected":false},"author":2,"featured_media":34124,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","fifu_image_url":"https:\/\/img.etimg.com\/photo\/88591548.cms","fifu_image_alt":"","footnotes":""},"categories":[607],"tags":[19657,24048,1126,6594,1551,23167,22287,25172,20011,5216,37636,8322],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/34123"}],"collection":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/comments?post=34123"}],"version-history":[{"count":1,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/34123\/revisions"}],"predecessor-version":[{"id":34125,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/34123\/revisions\/34125"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media\/34124"}],"wp:attachment":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media?parent=34123"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/categories?post=34123"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/tags?post=34123"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}