Bombay Shaving Company, a direct-to-consumer grooming and personal care startup, has secured INR 24 crore ($3 million) in debt financing from venture debt fund Alteria Capital.
Shantanu Deshpande, the founder and CEO of Bombay Shaving Company, stated that the funding will support the startup in its next phase of growth.
Deshpande mentioned, “We anticipate approximately 35% growth in FY25. It is crucial at this point to enhance the brand’s visibility through investments in brand campaigns, particularly for our core power products.”
This funding comes two years after Bombay Shaving Company raised INR 160 crore in its Series C round from investors such as hedge fund Malabar Investments, Gulf Islamic Investments, and Singularity AMC. The startup is currently in talks about raising equity funding for its Series D round.
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Established in 2016 by Deshpande, Bombay Shaving Company began as a direct-to-consumer brand specializing in men’s shaving and grooming products. Over time, the company diversified into additional categories, including women’s grooming, and evolved into an omnichannel brand.
The startup’s range of products can be found on numerous ecommerce platforms such as Nykaa, Flipkart, and Amazon, as well as in over 40,000 retail outlets. Bombay Shaving Company asserts its clientele spans across India, the US, Europe, the Middle East, Australia, and New Zealand.
Deshpande stated that the new funding will be deployed to improve the startup’s go-to-market strategy in the razor category, which is its current primary focus. Furthermore, the company plans to develop new products and innovations.
Deshpande continued, “We also want to increase our offline (channel) exploration and go from our current 12 cities to 25 cities.”
Meanwhile, Ankit Agarwal, managing partner at Alteria Capital, stated that Bombay Shaving Company has revolutionized the grooming and personal care sector, which has long been dominated by established brands, through its innovative approach.
According to him, Bombay Shaving Company has not only disrupted the status quo but also established itself as a top brand that consumers choose in this competitive market by changing product formulas, creating new subcategories, and implementing cutting-edge distribution methods.
The venture debt fund invested in the startup from both its second and third funds.
It’s worth noting that Alteria Capital announced the final closing of its third venture debt fund at INR 1,550 Cr last week. From this fund, they have already invested in startups such as Renee Cosmetics, One Card, Bliss Club, Rebel Foods, Giva, Kissht, Traya, Bluestone, and Ather.
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Overall, Deshpande-led Bombay Shaving Company has amassed a total funding of about $48 million to date.
Although it has not yet filed its FY23 financials, Deshpande mentioned that the startup generated approximately INR 178 crore in revenue during FY23, accompanied by a negative 37% EBITDA. In FY22, it recorded an operating revenue of INR 99.93 crore, but experienced a nearly threefold increase in net loss year-on-year, reaching INR 42.92 crore.
In the realm of men’s grooming, Bombay Shaving Company vies for market share against competitors such as The Man Company, Ustraa, and Beardo.