MyGlamm to expand to 10 new cities, launch own product line2 min read . Updated: 13 Jul 2016, 01:43 AM IST
On-demand beauty service provider MyGlamm is also looking to go global and enter Indonesia and Dubai
On-demand beauty service provider MyGlamm is looking to expand its business to 10 new cities and launch its own line of products as it eyes a near threefold jump in revenues in the next six months.
MyGlamm, run by Sanghvi Technologies Pvt. Ltd, will launch its services in cities such as Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Indore, Jaipur and Kolkata in the next six months, according to founder and chief executive officer Darpan Sanghvi.
Currently, the company gets 65% of its business from Mumbai and 35% from Pune.
With increased focus on high-margin categories, the firm is looking to launch its own skincare and cosmetics line. It is also looking to go global and enter the Indonesia and Dubai markets, said Sanghvi in an interview.
Founded in 2015, the company turned profitable in April this year and is looking to invest about $5-6 million over the next 12 months on domestic and international expansion as well as launching its private label.
“The MyGlamm model works very well in markets where we can achieve gross margins of 50% or more. This is achieved in countries where traditionally labour costs are low—that is, the cost of salaries of the artists does not exceed 30% of revenues. Thus Indonesia and Dubai became natural markets to expand into... they are the largest markets in south-east Asia and Middle East, respectively. Thus, we chose both these locations as our next locations for expansion," Sanghvi explained.
“Business, including both on-demand service and training academy, will soon be available in 10 new cities, adding about 1,000 paying students cumulatively pan India to the training academy per month," he added.
MyGlamm operates its own training academies along with its on-demand beauty services that can be requested for via the MyGlamm mobile application or through a phone call. These training academies provide courses in beauty, hair and make-up to students, making them an independent revenue source for the company.
A training course could cost between ₹ 5,000 and ₹ 1.2 lakh for periods ranging from two days to six months. The firm claims about 40-50 students enrol per month in Mumbai.
In April this year, MyGlamm raised $6 million from France-based beauty products chain L’Occitane to go pan-India. According to the company, this strategic collaboration gives MyGlamm access to L’Occitane’s research and development, easing the firm’s path to launching its own product line.
The firm currently has 120 artists on its rolls, catering to 50,000 customers.
According to Sanghvi, the company witnesses a repeat rate of 65-75%. In May, it fulfilled 18,000 service requests with an average price of ₹ 1,500-1,800.
“The on-demand service at home gets 75% of total booking requests via the mobile application, out of which up to 60% are for services required in the next two hours. I find great potential in the instant gratification market," Sanghvi said.
MyGlamm competes with Vyomo Pte, Vanity Cube (Vanity Cube Pvt. Ltd) and StayGlad (Glow Prime Technologies Pvt. Ltd), among others. On-demand beauty service providers are attracting a lot of attention from traditional offline beauty salons. In April this year, beauty salon chain Naturals bought a controlling stake in Vyomo for ₹ 100 crore. Vyomo was rebranded as Naturals@Home, according to a VCCircle report.
Delhi-based Vanity Cube raised $300,000 in March, largely from Unicorn Ventures. StayGlad raised an undisclosed amount of Series A funding in December last year from venture capital firm Bessemer Venture Partners and Anil Chopra, former chief executive officer of Lakmé Lever Pvt. Ltd.