Male grooming brand Bombay Shaving Company (BSC) has raised Rs 160 crore (around $21.4 million) in a fresh round of funding led by Malabar Investments, a local hedge fund.
The Series C round also saw participation from Patni Advisors, Singularity AMC, and other HNIs, the company said in a statement.
The transaction also included an Esop sale for few of BSC's employees and secondary exit to some of its early backers worth Rs 45 crore, it added.
In November, VCCircle reported that BSC had hired boutique investment banking firm o3 to scout for potential investors for fundraising.
The company will use the capital primarily towards expanding its portfolio of personal care and hair removal products. Besides, BSC will continue to aggressively expand its offline distribution, build international presence, invest in brand building and hire talent across positions.
"We entered the market looking to raise Rs 100 crore but were delighted to have received offers of around Rs 500 crore. We will be evaluating how to further accommodate valuable investors, said Shantanu Deshpande, founder and CEO at BSC.
The brand, operated by Visage Lines Personal Care Pvt Ltd, is also planning to raise another Rs 300 crore in funding soon. It also intends to acquire brands in adjacent categories and content platforms.
"We believe hair removal is a large market and Bombay Shaving Company has emerged as a strong challenger across categories. We are thrilled to partner with them,” said Sumeet Nagar, MD at Malabar Investments.
Deshpande, a former McKinsey & Co consultant, had launched Bombay Shaving Company in June 2016. The company now has more than 100 products across shaving, bath and body, skin, and beard care categories.
This will be the sixth round of financing for the company that has been backed by investors such as Sixth Sense Ventures and Colgate-Palmolive. In 2019, the firm had created exits worth Rs 20 crore for early angels and employees.
Last year, the company had secured $6.2 million in a funding round led by consumer goods giant Reckitt Benckiser.
BSC competes with the likes of Marico Ltd-owned male grooming brand Beardo and Emami backed The Man Company.
In June last year, Kolkata-based fast-moving consumer goods maker Emami Ltd had increased its exposure in Helios Lifestyle Pvt Ltd, the startup that sells grooming products under the brand The Man Company.
In July 2020, Marico Ltd, the maker of Parachute hair oil and Saffola cooking oil, bought the remaining 55% stake in Zed Lifestyle Pvt Ltd, which runs male grooming brand Beardo.
Early last year, Wipro Consumer Care, a unit of Wipro Enterprises Pvt Ltd, invested in Chandigarh-based male grooming startup LetsShave Pvt Ltd.