In a surprising twist, Deep Bajaj and Mohit Bajaj, the founders of women’s wellness brand Sirona Hygiene, are in the final stages of repurchasing their company from the Good Glamm Group. This development comes just months after Sirona was acquired by Good Glamm for Rs 450 crore in an all-cash deal in October 2024.
Credits: Morning Context
Good Glamm, which has aggressively expanded by acquiring multiple beauty and personal care brands, is now facing financial difficulties, forcing it to offload assets. As part of the buyback deal, Sirona’s founders will take on debt liabilities of Rs 160-180 crore owed to banks, lenders, and vendors. The debt will be renegotiated and partly refinanced before the transaction is finalized.
Why the Buyback?
While Good Glamm initially saw value in Sirona’s established marketplace sales channels, the acquisition began to unravel due to Good Glamm’s financial strain. The company failed to make certain payments to Deep Bajaj and Mohit Bajaj, leading to friction between both parties. Simultaneously, Good Glamm took on additional debt to sustain Sirona’s operations, compounding its liabilities.
Rather than wait for the situation to escalate to the National Company Law Tribunal (NCLT), Sirona’s founders chose to take back control immediately. “There was an option to wait and let the matter reach the NCLT. However, Sirona’s founders didn’t want to lose six months and build their team and vendor relationships from scratch,” said a source familiar with the matter.
A Pattern of Founder Buybacks
This is not the first instance of a startup founder reclaiming their company after a failed acquisition. Earlier, the founders of Lifelong, a consumer durables brand, repurchased their venture from Thrasio after the latter failed to meet deal terms due to cash flow constraints. Similarly, Trase Footwear’s founders bought back their company from Upscalio.
Sirona’s Market Position and Financial Performance
Founded in 2014, Sirona gained prominence with its flagship product, PeeBuddy, and expanded into menstrual hygiene and personal care. Competing against brands like Sanfe, Nua, PeeSafe, and HealthFab, Sirona carved out a niche in India’s fast-growing feminine hygiene market. However, despite a peak revenue run rate of Rs 140-150 crore, Sirona’s income dropped sharply, closing FY24 with just over Rs 100 crore in revenue. By December 2024, its monthly revenue had plummeted to Rs 2 crore, primarily due to inventory serviceability issues.
To reclaim Sirona, Deep and Mohit Bajaj have agreed to absorb some of the company’s debt. At present, they are not looking to raise external capital for the buyback but may explore funding options later.
Good Glamm’s Financial Turmoil
Good Glamm’s rapid expansion came at a cost. The company accumulated various forms of debt, including venture debt from Stride, Trifecta, and Alteria, as well as credit lines from HDFC and HSBC. Many vendors have reportedly been awaiting payments for over a year.
In an effort to stay afloat, Good Glamm’s founder, Darpan Sanghvi, is negotiating a Rs 150 crore funding deal with Gujarat-based Veloce Fintech. However, this funding round could come at a significantly lower valuation—Good Glamm’s peak valuation of Rs 10,000 crore ($1.2 billion) is expected to drop drastically to just Rs 250 crore.
Financial difficulties have also impacted Good Glamm’s workforce. The company delayed January salaries, prioritizing employees earning Rs 50,000 or less. Downsizing is expected even if the funding round goes through.
Investor Exodus and Future Uncertainty
In a sign of deeper troubles, representatives from Accel, Bessemer Venture Partners, and Prosus resigned from Good Glamm’s board in December 2024, according to regulatory filings. This investor pullback signals a lack of confidence in Good Glamm’s financial management and future prospects.
Credits: Business Standard
What’s Next?
As Good Glamm struggles to regain financial stability, Sirona’s founders are betting on their ability to rebuild their brand independently. Given Sirona’s past success and the founders’ deep understanding of the market, this buyback could mark a fresh start for the women’s wellness brand. Meanwhile, Good Glamm faces mounting pressure to restructure its operations, cut costs, and find sustainable sources of revenue.
The coming months will be crucial in determining whether Sirona can reclaim its market position and whether Good Glamm can navigate its financial crisis without further asset sales. For now, one thing is clear—India’s D2C beauty and personal care sector is witnessing dramatic shifts, and only the strongest will survive.
