Sidharth Malhotra’ Lipstick Ad and the Anatomy of a Viral Beauty Campaign

November 14, 2025: The dramatic rise and subsequent fall of a major beauty and personal care conglomerate, once valued at ₹7,000 crore, have been revealed. The disintegration of the structure, which housed brands including MyGlamm, Sirona, and The Moms Co, occurred despite a series of headline-grabbing, viral marketing campaigns that positioned the company as a digital disruptor.

Celebrity Stunts That Went Viral

The brand’s unique approach to advertising was often commended. Conventional advertising norms were actively broken, and significant public attention was generated through calculated celebrity stunts.

• Sidharth Malhotra’s Lipstick Endorsement: A bold campaign, featuring actor Sidharth Malhotra with lipstick marks and the tagline, “Tested on SID, not tested on animals,” was masterminded. This unconventional choice of a male celebrity for a lipstick ad was driven by affordability and a desire to align with the cruelty-free movement, allowing the message to be quickly amplified across the nation. A massive viral win was reportedly achieved by this idea, which skillfully capitalised on a cultural moment.
• Sonakshi Sinha’s ‘Fake Arrest’: A staged video of actress Sonakshi Sinha being “arrested” was circulated widely, drawing immediate public and media scrutiny. The stunt was later revealed to be a promotional teaser, declaring that she was being detained for looking too good in the brand’s HD matte makeup. High visibility was secured through this disruptive gimmick, with even a call reportedly being placed from Shatrughan Sinha’s office.

These clever campaigns successfully kept the brand culturally relevant and ensured its visibility was maintained. However, the financial instability beneath the surface was not offset by this marketing genius.

The Foundation Cracks: Aggressive Growth Over Profitability

The root cause of the collapse was disclosed by Darpan Sanghvi, the former CEO, as an unsustainable “momentum trap” entered into after the company achieved unicorn status in 2020. Aggressive expansion was prioritised over financial health, leading to a catastrophic chain of events:

• Acquisition Strategy Failures: An ambitious ₹3,000 crore acquisition aimed at doubling the company’s valuation was pursued. The collapse of this major deal, precipitated by the unexpected resignation of the acquiring firm’s CEO, triggered a severe liquidity crisis.
• Profitability Ignored: Financial health metrics, such as CM2 profitability (profit after marketing costs), were overlooked during the chase for topline growth. By late 2021, it was discovered that nearly ₹600 crore had been burned, with money being lost on every transaction despite a base of 3.5 lakh monthly transacting customers.
• Chaotic Internal Expansion: A rapid escalation of the workforce, which grew from 200 to 1,200 employees in only three months, led to organisational confusion. Core teams were fractured, and coordination was lost across the 11 acquired companies.
• Unfocused Ambition: Efforts were made to simultaneously switch from an online to an offline retail model, with ₹300 crore being spent on the transition, while multiple celebrities were being signed. This lack of focus was exacerbated by investors’ advice to prioritise profitability being dismissed, as aggressive scaling was believed to be the only path forward.

Aftermath

The deteriorating situation led to vendor payments and employee salaries becoming difficult to manage, a low point acknowledged by the CEO. Ultimately, the conglomerate structure could not be maintained, and the various brands under the group’s umbrella were sold off one by one, bringing the dream to an effective zero.

The story now stands as a cautionary tale, demonstrating how the pursuit of vanity valuations and rapid growth without a solid financial foundation can lead to a complete breakdown, even when supported by highly effective, viral marketing efforts.