The global shaving market has long been a two-horse race between Procter & Gamble’s Gillette and Edgewell’s Schick.
The rise of online startups such as Dollar Shave Club and Harry’s Inc led to a corporate acquisition frenzy. Unilever bought Dollar Shave Club for US$1 billion in 2016, but P&G and Edgewell have faced tougher scrutiny in their quest to retain dominance in the global shave market.
The US Federal Trade Commission (FTC) took action against Edgewell’s US$1.37 billion attempted buyout of Harry’s Inc in February last year. P&G’s takeover of Billie, the women’s shaving startup, was also blocked by the FTC in January.
Following the collapse of the Edgewell deal, Harry’s Inc has raised US$155 million in a Series E funding round, backed by Bain Capital, one of the world’s leading multi-asset investment firms, and Macquarie Capital, the Australian multinational investment bank.
With a market capitalisation of US$1.7 billion, the company will invest in new products across its core brand and Flamingo, its women’s razor and body brand founded in 2018.
Harry’s also entered pet care last March at the beginning of the Covid-19 pandemic with the Cat Person brand. A new haircare brand called Headquarters debuted in January.
Further funds will be allocated to acquiring new brands in the fast-moving direct-to-consumer market and the company will also focus on international expansion.