ISN Exclusive: Good Glamm Group likely to face legal action as lenders Oxyzo and HSBC consider NCLT route

Oxyzo and HSBC are considering legal action against cash-strapped The Good Glamm Group (GGG) to recover pending dues from the startup, as troubles mount for the company, sources told The IndianStartupNews (ISN).

Oxyzo and HSBC, companies that lent money to GGG, are now considering legal action against the company. “Oxyzo is dragging GGG to the National Company Law Tribunal (NCLT) to recover pending dues worth Rs 2.5 crore,” one of the sources cited above told ISN.

Oxyzo is the first major company to drag Accel-backed GGG to the NCLT. HSBC, another large lender, is likely to follow suit and recover its pending dues in a move inspired by Oxyzo.

Good Glamm Group, Oxyzo and HSBC did not reply to ISN’s queries. 

Veloce funding falls through Troubles are mounting for GGG at a time when it is strapped for cash and its latest funding rope – the last sliver of hope it had – is on the verge of falling through. GGG was in talks to raise Rs 150-200 crore from Veloce, a Gujarat-based debt provider and investment broker to revive its business and keep brands like Sirona and others afloat.

“Rs 150 crore would have solved 90% of GGG’s current issues as all creditors would have been repaid their pending dues,” a second person told ISN. “However, Veloce has pulled out and it is highly unlikely that the company will now get any money.”

GGG has been attempting to raise money through several channels, including putting its hero brands like Organic Harvest, The Moms Co, on sale to generate some money but none of the talks have gone through. It has however sold smaller brands like MissMalini etc on sale to keep operations afloat. 

The money has, however, not been enough as the company has skipped salary repayments and more signs of increasing stress.

Now that the Veloce round has fallen through, and lenders are dragging GGG to the NCLT, it remains to be seen how the company will navigate its challenges and re-emerge to justify its hefty valuation of over $1 billion.