The Man Company, direct to consumer(D2C) brand, has got third investment from Emami. In the latest investment, The Man Company raises Rs 50 crore from fast-moving consumer goods(FMCG) giant. Last time, Emami invested in the startup in 2019.
Emami’s Third Investment in The Man Company
In regulatory filings, The Man Company has revealed that it has allotted 49,665 equity shares to Emami at Rs 9617.05 per share to get a Rs 50 crore investment from Emami.
With the latest investment, Emami has become the largest stakeholder in The Man Company. As per the latest update, it has control over a 45.96% stake. Hitesh Dhingra, Bhisham Bhateja, and Parvesh Kumar, the co-founders of the startup, have transferred some of their stakes to Emami during the recent investment round. Now, all three hold a 36.5% stake in the grooming products startup.
After raising Rs 50 crore from Emami, The Man Company’s valuation has reached around Rs 255-270 crore, as reported by Fintrackr.
Emami, a Kolkata-based FMCG giant, is continuously investing in The Man Company. Now, it holds the majority stake in the firm. Financial Experts believe that Emami will acquire the grooming product startup very soon.
The same thing happened with Beardo, the D2C men grooming products startup. It got Marico’s support in most of the funding rounds and finally, Marico acquired Beardo.
Future of Men Grooming Market
The Man Company competes with Beardo, Ustraa, The Bombay Shaving Company, and the Bare Anatomy who are also providing hair and skin care products for men.
But, the major concern for all the men-based skincare startups is slow growth. If these startups get compared with women-oriented skincare firms including Mamaearth, Sugar Cosmetics, etc, their progress is not satisfactory.
For example, Mamaearth and Sugar Cosmetics crossed Rs 100 crore revenue mark in FY20. On the other hand, Ustraa and Beardo received revenue of just Rs 60 crore and Rs 70 crore respectively.
Experts and investors are still hopeful about the men’s grooming sector. They said that there is positive growth in the sector.
One anonymous investor said that such a market was nowhere five years back, so growth is there. Talking about the men grooming sector further, the same investor said:
“There was no space for D2C brands in the men grooming space five years ago. However, this market has now grown anywhere between Rs 600-800 crore. The market for D2C brands in the men grooming space would grow with increasing awareness but it would take several years to reach a sizable scale.”
