More acquisitions in the segment are likely, say players
Fast moving consumer goods (FMCG) companies are likely to replace the regular venture capitalists as investors in the ₹3,200- crore male grooming category, as raising money through the regular series-led rounds gets tough.
Recently, Marico picked up a 45 per cent stake in Ahmedabad-based ‘Beardo’, giving a leg-up to the year-old start-up. This has made other angel and seed-funded online men’s grooming players like Bombay Shaving Company, Lets Shave and The Man Company, hopeful of getting investment from FMCG companies in their Series-A round of funding.
“The number of acquisitions in the male grooming category will only increase with time as funding through Series A and B rounds are now on hold. As it gets challenging to raise money, acquisitions will be the way forward with large FMCG companies acquiring start-ups which are more focused on this large category.
“Marico has already snapped up the largest male grooming start-up and now we even have international cosmetic giants like the $6.4-billion Sheiseido who are keen to acquire in India,’’ said Apoorv Sharma, Co-Founder, Venture Catalysts, which raised seed funding…