Harry’s, the direct-to-consumer mens’ razor company, has just announced the close of a $75.6 million Series C funding round led by Wellington Management. A source confirmed with TechCrunch that the company is valued at $750 million after money.
The Harry’s business might seem simple on the surface. The company sells razors over the internet, both on a one-off basis and as a subscription. But Harry’s is actually the only razor blade company that owns the full stack, from manufacturing of the razors to engagement on the consumer level through direct sales.
“Razor blades are much harder to make than we anticipated,” said cofounder Jeff Raider, who previously was on the founding team at Warby Parker. “You actually have to change the molecular composition of the steel and then grind it so that it’s very sharp at its tip and strong at the base. Because we are vertically integrated, we can take feedback to the customer and invest back into the manufacturing process to ensure a high quality product every time.”
It all began in a drug store.
Cofounder Andy Katz-Mayfield waited more than ten minutes for someone to unlock the case where they hold the razors. Even then, none of the products spoke to him as a consumer, and he left $25 poorer and feeling ripped off. The story resonated with Raider, who had experience building a consumer brand with Warby Parker, and the two paired up to create Harry’s.
Since, the company has raised a total of $287.1 million, including this latest round, and has expanded their product line to include two different razors, cartridges, and shave gel/after shave.
But Harry’s is about more than the product. It’s a brand, as the company is able to have a conversation with its consumers, asking them how often they shave and getting to know their preferences about the products. Plus, Harry’s has an online magazine called “Five O’Clock Magazine” which follows various everyday guys through their morning routine, as well as a Harry’s Corner Store (barber shop) in Soho New York.
Eventually, I’m told, the company may look to build out a women’s razor blade brand, but for now focus is solely on building out Harry’s.
“The greatest challenge at Harry’s is that every day, we make physical products that are very difficult to make,” said Raider. “I’m humbled by the process that happens in our factory in Germany, and as we continue to innovate, we have a lot of ideas for how we want to improve products over time for our customers. The thing that’s really hard is making those ideas come to life in production.”
The new funding will go towards expanding the German factory and its production capacity, as well as investments in R&D and hiring.
If you want to learn more about Harry’s, you can check out the website here.