Korean razor manufacturer Dorco Ltd, which had an exclusive partnership with LetsShave Pvt. Ltd, has turned into an investor in the grooming products firm by picking up a 10% stake in the company.
LetsShave will use the funds to strengthen its online business and expand its product portfolio, said founder Sidharth S Oberoi, in a statement by the startup, without disclosing the funding amount.
LetsShave, founded in 2015, had partnered Dorco from the beginning for the supply of razors, which remain its core category.
"We are happy that our partner became our investor and recognised our focus. This investment validates our business model and growth,” said Oberoi.
LetsShave, with more than 450,000 customers, has 22 grooming products for men and women and aims to expand the portfolio to 44, the statement said.
The company is also looking for partnerships with fast-moving consumer goods (FMCG) firms.
According to research firm Euromonitor, shaving holds the largest market share in the grooming category at more than 42%, while men’s grooming market grow to $2.2 billion by 2020.
Ken Kwak, director, Dorco, said that it considered LetsShave as the best partner for it long-term vision for the Indian market because of the grooming company's "differentiated capabilities".
Headquartered in Seoul, Dorco manufacturers low-cost disposable razors, shavers, shaving systems and shaving accessories for men and women. It exports products to more than 130 countries.
Deals in grooming products space
There have been a couple of deals in the grooming products segment.
Earlier in August, Bombay Shaving Company raised an undisclosed amount in its Series A round led by consumer goods major Colgate-Palmolive. The company's existing venture investor Fireside Ventures also participated in the round.
Last year, fast-moving consumer goods major Emami Ltd entered the men’s grooming products space by picking up 30% stake in The Man Company.
Again last year, Marico Ltd, the maker of Parachute hair oil and Saffola cooking oil, also entered the male grooming market by picking up 45% stake in Zed Lifestyle Pvt. Ltd, which owns Beardo.