Leading Asian razor manufacturer Dorco Ltd announced its first ever investment in Indian startup LetsShave, and has acquired 10 per cent stake, making it the first ever time when a Korean razor manufacturing giant has chosen to invest in an Indian startup specialising in the grooming products portfolio.
On investing in LetsShave, Dorco Director Ken Kwak said: "We are on a mission to be an innovator in India leveraging our customer-oriented innovation, global experience and 60 years of heritage. We want to partner with innovators here who are bold enough to bring something new to the table for Indian customers. Acknowledging their enthusiasm and vision for the grooming business, and their differentiated capabilities, we considered LetsShave as the best partner for our long-term vision for the Indian market."
Founded in 2015 by Sidharth Oberoi, LetsShave aims to introduce subscription-based shaving product range. The startup now has more than 4,50,000 customers base and has been growing at 45 per cent year-on-year ever since. Beginning with around four products, LetsShave is now selling 22 products and plans to expand to 40 products in the near future and delivers almost everywhere in India.
Dorco, on the other hand, is one of the leading manufacturers of razor blades in the world with more than 60 years into the industry. Headquartered in Seoul, this Korean market leader exports its wide range of products to more than 130 countries around the world.
"For the supply of razors, we had partnered with Dorco from the day one due to our commitment towards quality. We are excited to know that Dorco chose us for investing in India because since the start we wanted to serve quality razors in both One-Off & logical subscription-based model of delivery of shaving products to Indian customers. We are happy that our Technology manufacturer brand partner became our investor and recognised our focus. This I believe is also an effective business strategy for any startup in general. Our team morale is high because this investment validates our business model and growth," said LetsShave Founder and CEO Sidharth S Oberoi.
Oberoi continued: "We have planned on using the funds towards our online business and expanding the product portfolio so that we can cater to men's and women's grooming needs more efficiently. We want to become a one-stop solution for grooming while keeping shaving as our core category. This investment has given both the companies a great opportunity to share unique resources and capabilities to create a competitive advantage in the market. We believe that this alliance will ensure life-long product supply for the Indian market and help us introduce advanced products. We are seeking out further strategic partnerships with like-minded FMCG's for entering into retail channel to grow our business. "
Euromonitor reports that shaving holds the largest market share in the grooming category with more than 42 per cent while men's grooming market will account for USD 2.2 Billion by 2020. In addition, BCG and Google India have reported that 40 per cent of FMCG business would be driven by online by 2020.
"Considering the potential of this market, this was a very important stage for us to stay focused and leverage the opportunity in the market. We have always kept our core values consistent. Whatever we do, we ensure that our product and service make our customers feel good and stay sharp. Our next set of plan is about reaching maximum number of Indian customers through our products and services in a cost they can afford," Oberoi said, adding that LetsShave aims at leveraging on value, technology and trust.
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