Bombay Shaving Company raises Rs 160 crore in Series C

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Bombay Shaving Company (BSC) has raised Rs 160 crore in a Series C round led by Malabar Investments, a hedge fund based in India, the grooming brand said on January 5.

The round also saw participation from Patni Advisors, Singularity AMC, and other high networth individuals. The company, which will raise more funds as part of the round, declined to disclose the valuation.

“We are singularly focused on building a brand that owns hair removal. As we scale from Rs 150 crore to 500 crore and 1,000 crore, we needed an investor group that could guide us on building an IPO-able company,” said Shantanu Deshpande, founder CEO of BSC.

The direct-to-consumer (D2C) company, which was launched in 2016, also said it exercised its third employee stock ownership plan (ESOP) sales for some of its employees and exits for early investors up to Rs 45 crore.

The company said it would use the funds to scale operations to Rs 500 crore top-line with an omnichannel presence over the next two years and expand its portfolio of personal care and hair removal products.

BSC is also looking to build a presence in the US, Europe, GCC (Gulf Cooperation Countries) members and Australia, cater to the Indian diaspora, invest in brand building and hire talent across positions.

The company is looking to expand its stores presence from 50,000 to 200,000 and grab over 15 percent share in hair removal in these stores.

BSC also planned to acquire brands in adjacent categories as well as content platforms and was in advanced talks to raise another Rs 300 crore for it, the company said.

Also read: Your guide to India’s startup unicorns of 2021

In 2021, BSC forayed into women hair removal with their brand ‘Bombay Shaving Company–Women’, which now accounts for nearly 25 percent of the total business.

BSC portfolio comprises hair removal products for both men and women, including shaving regimens, trimmers, beard products, razors for women, wax strips, hair removal creams, and other products & accessories.

The company plans to achieve 10X growth in the next 5 years.

The company had lined up more than 30 products for 2022 and was keen to invest in the brand as well, Deshpande said.

It roped in Indian cricketer R Ashwin and actor Alaya F as brand ambassadors, leading to a surge in overall volumes, transaction value, and an increase in users’ vis-à-vis last year, it said.

The company was clocking 1.5 million shipments a quarter and expected to achieve 10-15 percent additional revenue through the international channel.

Direct to consumer brands, which sell to consumers directly from their website or via ecommerce platforms, had a blockbuster 2021 as the sector raised over $2 billion.

MyGlamm, Licious and Rebel Foods also turned unicorns in 2021 which saw a record 43 startups valued at more than a billion dollars.

Honasa Consumer, the parent company of personal care brands such as Mamaearth and The Derma Co, on January 1 became the first unicorn of 2022 after it raised $52 million in a round led by Sequoia at a valuation of $1.2 billion.