Exclusive: Bombay Shaving Company Raises INR 24 Cr Debt From Alteria Capital

D2C grooming and personal care startup Bombay Shaving Company has raised INR 24 Cr ($3 Mn) in debt funding from venture debt fund Alteria Capital.

Shantanu Deshpande, founder and CEO of Bombay Shaving Company, told Inc42 that the funding will help the startup in the next phase of its growth journey.

“We are looking at almost 35% growth in FY25. Getting the brand a lot more salient through investments in the brand campaign for our core power products will be critical right now,” said Deshpande.

The fundraise comes over two years after Bombay Shaving Company raised INR 160 Cr in its Series C funding round from hedge fund Malabar Investments, Gulf Islamic Investments, Singularity AMC, among others. Currently, the startup is in exploratory talks to raise equity funding in Series D round.

Founded in 2016 by Deshpande, Bombay Shaving Company started as a D2C men’s shaving and grooming products brand. Over the years, it expanded into other categories, including women’s grooming, and turned into an omnichannel brand. 

The startup’s products are available on various ecommerce marketplaces, including Nykaa, Flipkart, and Amazon, and across 40,000 stores. Bombay Shaving Company claims to serve customers in India, the US, Europe, the Middle East, Australia, and New Zealand.

Deshpande said the fresh funds will be used to further refine the startup’s go-to-market strategy for the razor category, which is currently the main focus area. It will also experiment with a few new products and innovation.

“We are also looking to go from 12 cities currently to 25 cities and experiment more with offline (channel) than before,” Deshpande added.

Meanwhile, Alteria Capital managing partner Ankit Agarwal told Inc42 that Bombay Shaving Company has disrupted the grooming and personal care landscape, historically dominated by incumbent brands, with its innovations.

“From redefining product formulations to pioneering new sub-categories and adopting innovative distribution channels, Bombay Shaving Company has not only challenged the status quo but has also earned its place as a preferred leading brand in this dynamic space,” he added. 

The venture debt fund invested in the startup from its second as well as third funds.

It is pertinent to note that Alteria Capital announced the final close of its third venture debt fund at INR 1,550 Cr last week. It has already invested in startups like Renee Cosmetics, One Card, Bliss Club, Rebel Foods, Giva, Kissht, Traya, Bluestone, and Ather from the third fund.

Overall, Deshpande-led Bombay Shaving Company has raised a total funding of about $48 Mn till date. 

While it is yet to file its FY23 financials, Deshpande said the startup clocked around INR 178 Cr in revenue in FY23 with a negative 37% EBITDA. In FY22, it posted an operating revenue of INR 99.93 Cr while net loss widened almost 3X year-on-year to INR 42.92 Cr.

In the men’s grooming space, Bombay Shaving Company competes with the likes of The Man Company, Ustraa, and Beardo.