Mumbai, Nov 14 : When actor Sidharth Malhotra appeared on a giant billboard wearing lipstick with the slogan “Tested on SID, not on animals,” the campaign instantly went viral. Soon after, social media buzzed again when a staged “arrest” video of Sonakshi Sinha shot like a paparazzi scoop was revealed to be a promotional gimmick for a new makeup line.
These bold, disruptive stunts helped build one of India’s fastest-growing beauty conglomerates. But behind the flashy marketing, trouble was brewing.
In a recent disclosure, Darpan Sanghvi, former CEO of the Good Glamm Group, detailed how a chain of missteps and over-ambitious decisions pushed the company from a valuation of ₹7,000 crore to zero in a matter of months.
A ₹7,000-Crore Rise and a Sudden Collapse
Once hailed as India’s modern “house of brands,” Good Glamm Group oversaw beauty and personal care labels like MyGlamm, Sirona, The Moms Co, Organic Harvest, and others.
What began as a ₹40-crore business in 2020 soared to ₹650 crore in 2023, eventually reaching a valuation of ₹7,000 crore.
But a major acquisition deal expected to be a turning point collapsed without warning when the acquiring company’s CEO abruptly resigned. According to Darpan, the fallout triggered severe liquidity issues, leaving the company unable to pay vendor dues and even employee salaries.
One by one, brands under the Good Glamm umbrella were eventually sold off as the conglomerate structure disintegrated.
What Went Wrong Behind the Scenes
Speaking to Think School Hindi (Zero1), Deepak Sanghvi admitted that the rush to scale aggressively after becoming a unicorn in 2020 pushed the company into what he called the “momentum trap.”
Key missteps he highlighted:
Aggressive acquisitions: A massive ₹3,000-crore buyout attempt aimed at doubling valuations proved unsustainable.
Ignoring profitability: Despite having 3.5 lakh monthly transacting customers by late 2021, each transaction incurred a loss. Nearly ₹600 crore was burned during this phase.
Chaotic expansion: Employee strength shot up from 200 to 1,200 in just three months, creating internal confusion across 11 companies and multiple founder-led teams.
Unfocused ambitions: The company tried to build the “next Unilever,” shifting rapidly from online to offline retail, spending ₹300 crore while signing multiple celebrities simultaneously.
Investor warnings dismissed: Repeated advice from investors to focus on profitability was overlooked.
Marketing Genius That Couldn’t Save the Finances
While operations faltered, Good Glamm’s marketing team continued to deliver headline-grabbing campaigns.
Sidharth Malhotra Lipstick Campaign:
With no category conflicts, hiring a male actor was far cheaper than hiring a top female celebrity. The bold visual—Sidharth in lipstick—paired with cruelty-free messaging struck viral gold.
Sonakshi Sinha’s “Arrest” Stunt:
A staged clip showing Sonakshi being detained drew massive attention, even prompting a call from Shatrughan Sinha’s office. The reveal: she was being “arrested for looking too good” in HD matte makeup.
These campaigns kept the brand culturally relevant but could not compensate for the mounting financial strain.
Lessons from the Collapse
Darpan eventually acknowledged that rapid growth had become a distraction. He urged founders to:
Focus on one key metric per quarter
Prioritise profitability over vanity valuations
Embrace jugaad when needed
Listen to investor warnings
He admitted that ignoring early red flags and chasing aggressive valuations ultimately cost the company its entire empire.