![]() "Harry's should be the platform of choice for other founders who are a couple of years behind them in their evolution," says Bain's Robinson. Investors are betting Harry's digital sales and marketing systems, and close relationships with retail titans like Target, Amazon, Walmart, and Costco can boost burgeoning brands. "M&A will be a pretty important part of the strategy." "There's a ton of consumer brands out there that are high growth and disrupting existing categories," says Katz-Mayfield. Harry's now has more than $200 million in cash to make deals. They say Harry's, which has 900 employees and is profitable, will use the new capital to develop new products and make acquisitions in the booming direct-to-consumer market. The cofounders met as junior analysts at consulting firm Bain & Company. "They have executed exceptionally well, and we think they have the capability and playbook to do it again in other segments of the consumer world."įor Katz-Mayfield and Raider, the Bain Capital-led round is a homecoming of sorts. "Jeff and Andy have real-world experience and think about the business like investors who create a portfolio of brands and opportunities," says Jeff Robinson, a managing director at Bain Capital. The valuation: $1.7 billion-roughly 25% higher than the $1.37 blocked buyout by Edgewell. In the wake of the growth, Harry's has raised a $155 million Series E round led by Bain Capital and Macquarie Capital. "We have a big soap business, and people were now more conscious of hygiene, showering at home more as they traveled less, and demand for those products skyrocketed." for both Harry's and Flamingo," says Raider. ![]() "Segments of our business grew that we wouldn't have otherwise expected and our direct to consumer businesses took off in the U.S. It later expanded into major retailers like Target, Walmart, and Costco-all big box stores that have surged during the pandemic. The company had begun as an online, direct-to-consumer brand. Also helping: Harry's robust digital and physical store footprint. I was like 'Oh, gosh, this isn't gonna be good.'"Įven as people initially bought fewer razors during the pandemic, Harry's product diversification drove up 2020 sales by 25% to $370 million for the year. ![]() "I remember one of the first Zoom calls-everyone was growing a beard. And there's Cat Person-a high-protein cat food and pet care brand that a feline-loving employee had inspired. Flamingo sells women's shave products, while Headquarters makes treatments for hair and scalp care. Besides razors and shaving creams, Harry's now sells body washes, shampoos, and deodorants. In 2018, the cofounders had launched Harry's Labs to develop new products and brands to fill the rest of your shower shelf. It turns out the pandemic would be far better for business than Raider predicted. "I was like 'Oh, gosh, this isn't gonna be good.'" "I remember one of the first Zoom calls-everyone was growing a beard," says Raider.
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