Dollar Shave Club Raises $12 Million To Offer More Grooming Products

The series B round will help the company broaden its focus as a men's lifestyle brand.

Butt wipes were just the beginning.

Having raised a $12 million series B round, Dollar Shave Club announced it is expanding its portfolio to offer a dozen men's grooming and skincare products, most under $20, in the next year. The investment was led by Venrock, Comcast Ventures, New World Investors, and Battery Ventures.

"This funding is important to Dollar Shave Club's future plans to own the bathroom," CEO Michael Dubin told Fast Company. "We see a huge opportunity in the exploding, multibillion dollar men's grooming and skincare market to provide high-quality products that are affordable and appealing to our members. And given our direct relationship to our 330,000 and growing members, we want to improve and maximize that."

Dollar Shave Club, which began as a razor subscription service, also sells shaving cream and flushable wipes called One Wipe Charlies. About 10% of subscribers add one of these products to their razor orders. In addition to introducing new grooming products to the lineup, Dollar Shave Club also intends to use the funding to leverage its existing data to provide recommendations for consumers.

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14 Comments

  • meyerdaniel72

    CEO Mike Dubin recently presented at TechFestNW, discussing how to build a brand around stories

  • Dollar Shave Club recently released a new product: Dr. Carver's Magnanimous Post Shave Moisturizer, a post-shave moisturizer with anti-aging benefits.

  • Martin Gomez

    Dollar Shave Club has found a niche market with their razor subscription service and additionally have been able to develop strong brand recognition.

  • Robert Thomson

    Still evaluating these blade's, I like the fact that I can save 50% per month - $150/year on razor blades. They are not as good as the Gillette Fusion blades, but close enough and the extra savings is nice.

    I could see them expand into body wash, deodorant maybe even toothpaste. Like the fact that everything is shipped to my front door.

  • Anthony Reardon

    I have to say, I am a bit disappointed. When I first ran across the video, I was pretty impressed by the "No BS" problem to solution of this. I honestly resent forking over the crazy money for razors because common sense suggests there is no way it costs that much to make them. I buy fairly high quality with what I know works for me. I've tried cheaper but the experience is terrible by comparison. So I am kind of locked in to having no choice but to buy what I use, and like the commercial infers- seems like I'm paying for a bunch of advertising that means little to me.

    So here you have someone suggesting you can get great razors for a dollar a month, and for once that actually sounds reasonable. Yet, when you look more closely you see that dollar covers 4 razors for the month at what looks to be a pretty low grade system. They have an upsell with higher quality razors I might consider, but the price goes up substantially. It seems like pretty much the same selection process I am faced with when I hit the shelf, all kinds of generic or knock off alternatives I have tried and failed with that make spending the extra money necessary. So even if it amounts to half off the cost per razor, I'm not sure that means much if the product is sub-par. Then when you factor in how many razors I go through per month, I'm quadrupling the expense. Even with the question of quality aside, that means I'd be spending a lot closer to what I spend now, not the dollar per month that impressed me. That's when it starts to seem more like a "BS" solution.

    There's still a slight possibility they could win me over. If they proved the quality of the razor matches what I use now and put forward a more reasonable proposition that I might save 25% or more per month on the cost, then I'd want to consider it. However, that's half the battle all the generic knock offs have because once you've shopped around a bit and been "burned", you might find yourself locked in and unwilling to try alternatives no matter how much they sell themselves to be great.

    I think they need to refocus on the substantive aspect of "No BS" brand propositioning. They need to do a better job of actually delivering that value, and not so much the gimmick of appearing to be simple/ straightforward. Then when you look at the fancy wipes and shaving lotion, well now you are off the grid from the base simplicity and affordability. Those are glamour type products for a market that traditionally differentiates itself from the "glamour" toiletry preferences that hit home with the opposite gender. You can still get really good value for a lot less using top line products from main brands in shaving cream and TP. They might get somewhere with this business model, but my thought is "What kind of BS is that?"   

    Best, Anthony

  • Beauty industry exec

    Those morons have not built a brand or a product yet despite the fact that they already raised $10.8M in funding. What a colossal waste of money... 

  • They currently sell 6% of all razors in the US market, taking more marketshare in the "beauty" industry than any other startup has managed.

    But of course as a Beauty industry exec who spends their time anonymously calling successful entrepreneurs morons on blog comments, you have achieved something a little more impressive?

  • Peter

    They got 330,000 customers on the strength of a minute and a half long video. I'd say the brand built itself. But you're an exec, so you're probably way smarter than those VCs.