Marico took a 45 per cent equity share Beardo’s parent company in Zed Lifestyle Pvt. Ltd for an undisclosed amount.
“The equity stake shall be acquired over a period of two years, through primary infusion and secondary buyouts,” Marico said in a statement.
The investment was made with an aim to diversify Marico’s product portfolio for the Rs 3,200 crore men’s grooming market.
“It fast-forwards our journey towards nurturing a future-ready male grooming portfolio and brand in the online and salon space”, said CEO, Marico, Saugata Gupta, said in a statement.
He further added, “This partnership will help us access the emerging niches at the premium end and will turbocharge our digital marketing and social media engagement capability.”
Marico further said that it picked up stake in Beardo because the brand had strong sales online and in salons, making nearly 75% of its revenue from salon sales. Marico already sells men’s hair gel and men’s deodorant under the Set Wet brand.
“We are impressed with the founders and the velocity of growth of the business since inception”, Gupta said in the statement.
Beardo received US $500,000 in seed funding in September 2016 at a valuation of Rs 40 crore, led by New York hedge fund manager Raj Vazirani.