Good Glamm in jam, investors exit board | India News

BENGALURU: Mumbai-based unicorn Good Glamm Group became the latest startup to witness investor exits from its board, drawing attention to corporate governance issues in India’s startup ecosystem. Representatives from three venture capital firms – Anand Daniel, partner at Accel Partners, Vishal Gupta, partner at Bessemer, and Gaurav Kothari, principal at Prosus Ventures – stepped down from the company’s board in Dec.
The board exits come amid financial challenges at Good Glamm, including fund constraints, delayed salary payments, and layoffs. “Cheque bounces, defaults in salaries, provident funds, and TDS are all massive risks for anyone on the board of a company. In such a scenario, it is common for board members to step down to absolve themselves of legal liabilities,” Shriram Subramanian, founder and MD of proxy advisory firm InGovern, told TOI.
The company, which owns a portfolio of direct-to-commerce beauty and personal care brands, had planned an IPO last year, which did not materialise. While IPO can get delayed due to market conditions, Good Glamm has been in the spotlight for its financial difficulties.
Good Glamm said the board exits are part of an ongoing restructuring effort. “At Good Glamm Group, we are in the midst of restructuring and a subsequent fundraise. As a part of our restructuring, our board is also being reconstituted and new members will be joining our board,” the company said in a LinkedIn post on Thursday.
Investor resignations from startup boards are rare and often signal governance concerns. The developments at Good Glamm mirror those at Byju’s, where a series of board exits by key investors highlighted deeper structural and financial issues. This has reignited discussions on the role of investors in ensuring transparency and financial discipline in high-growth startups. As governance challenges persist, industry experts continue to debate the extent of investor responsibility in overseeing business practices and ensuring ethical leadership in India’s startup landscape.