Preview

Harry’s moves beyond shaving as it tries to become a platform and holding company for digitally-native brands.

To-the-point analysis about one of the five important stories from the week.  

What happened

  • Harry’s, a direct-to-consumer shaving brand, has raised $112 million in a new round of financing, which it plans to use to expand the brand products into personal care for men and women, household items and baby products, while also making investments and acquisitions in other brands.

Why it matters

  • Harry’s has raised over $475 million in financing, which makes it the most funded digitally-native brand ever. Now the company has to produce returns for its investors. It’s very possible that being just a razor and skincare brand was not going to cut it with such a large amount of financing, requiring the company to diversify into other markets and brands. It seems that this decision to expand was both a forced decision and a conscious choice.
  • Becoming a platform can help grow Harry’s beyond a shaving brand, which, coupled with the factory it bought in 2014, may give Harry’s a competitive advantage as it continues scaling. The outcome is dependent on whether this potential integration will deliver fundamental advantages for the brand that it works with, or if Harry’s is turning into a fund-of-funds for its original investors.

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