Shaving Startup Harry's Buys Razor Factory For $100 Million

With Warby Parker roots, Harry's aims to provide a direct-to-consumer boutique experience for shaving products.

Shaving startup Harry's has plunked down $100 million to purchase a 93-year-old razor factory in Germany.

The 10-month-old company, created by Warby Parker cofounder Jeffrey Raider, and Andy Katz-Mayfield, bought the Feintechnik factory outside Nuremberg to take on the likes of Gillette and Schick, which together own 85% of the shaving market. Though the men's shaving business is worth about $2.4 billion, sales growth is slowing, allowing Harry's, Dollar Shave Club, and other startups to enter the space.

The company had initially considered building a razor factory from scratch to control the manufacturing and selling of its products. But after visiting Feintechnik's premises, the cofounders realized it would be easier to buy a factory than custom build expensive machinery. In the summer, Harry's raised $122.5 million to finance the factory and invest in the company's growth. With the purchase, Harry's is growing the company to more than 400 people, more than 10 times its size prior, and gaining a new side business to make razors for other customers.

[Image: Harry's]

Add New Comment

5 Comments

  • Steve Worthington

    Nice to have a 4th player in the Shaving Industrial Complex (SIC). That said, the product that started the disposable society that we all live in now (the razor blade) has one foot out of the factory and one in the trash heap- one week of use is ridiculous. There's no new tech here at all- the factory is 93 years old. The world wants and needs a better solution.

    What I propose is a fresh edge every day for five years without needing to change out the blade. A blade that is sharpened to perfection automatically every day. That's BornSharp!

  • How is Harry's in LBO deals, making a distressed acquisition of a razor factory? It just launched barely 1 yr ago and has yet to really prove itself as a lasting brand. It was in a lawsuit with for patent infringement so it had some hefty legal bills to pay too. What the hell kind of boys club is this? The Tiger Global investment doesn't make sense. I guess their plan is to IPO soon (as a manufacturer co. instead of a brand) since the Harrys brand SUCKS. #WhartonBoysClub