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.AT