Marico strengthens bet on men’s grooming market; acquires startup Beardo

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Updated: Jul 01, 2020 3:53 PM

Marico had already acquired a 45 per cent stake in Beardo back in 2017 to tap into the men’s grooming market in India.

Beardo was one of the portfolio companies of VCats startup incubator.

FMCG major Marico has acquired five-year-old men’s grooming startup Beardo, according to the information disclosed with the stock exchanges. Beardo, which sells beard oils, beard waxes, soaps, and other facial hair products, was one of the portfolio companies of startup incubator VCats and with the acquisition by Marico, the incubator has taken a complete exit from the startup, VCats said in a statement. Marico, however, had already acquired 45 per cent stake in Beardo back in 2017 to tap into the men’s grooming market in India. The additional 55 per cent stake was acquired by Marico earlier this week.

“With Beardo’s acquisition, VCats’ investors have made returns in the range of 5x-8x. Besides Beardo, VCats has seen over 20 exits in just a span of four years. Some of the exits include– Fynd to Reliance Industries, Supr to Swiggy, Innov8 to OYO, Vahanalytics to Rapido, and Siftr to Apus,” it said in a statement. VCats along with other investors had put around $500k in Ahmedabad-based Beardo that grew its revenue by 40x since 2016, according to the incubator. “Men’s grooming market has grown from a mere Rs 3,200 crore in 2016 to a whopping Rs 10,000 crore today, and this speaks volumes about VCats’s ability to spot potential startups,” said Apoorva Ranjan Sharma, Founder, Venture Catalysts.

Also read: OYO, Byju’s, Swiggy, Zomato lead startup funding in H1 2020 even as Covid pulls down deal volume, value

“At a time when most of the Indian VCs and angel investors were chasing tech-startups from Mumbai, Delhi, and Bangalore, VCats believed in and reposed its faith in a startup from a small city like Ahmedabad,” Ashutosh Valani, Co-founder of Beardo that also has actor Suniel Shetty as its investor. The startup had recently signed actor Hrithik Roshan as its brand ambassador. It competes Bombay Shaving Company, Ustraa, LetsShave, and The Man Company in the men’s grooming market.

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