The money should help Dollar Shave Club stave off competitors like arch-rival Harry’s and Gillette, which launched its own subscription service last year. In a direct swipe at its competitor, Gillette called its program “Gillette Shave Club.”
Dollar Shave Club says it has more than 2 million members: The Los Angeles-based company’s core product is a subscription program in which customers pay to have shaving razors delivered to their homes. Known for its catchy viral videos, Dollar Shave Club also offers products like hair gel, shaving cream, and a line of “butt wipes” called “One Wipe Charlies.” According to Re/code, however, the company still isn’t turning a profit, despite bringing $64 million in revenue last year, and a projected $140 million this year.
This funding round is expected to go toward hiring new employees, launching new products, and marketing its existing non-razor fare. One of the biggest problems Dollar Shave Club faces is branching out beyond a core audience of Internet-savvy millennials and selling to a larger marketplace, where Gillette has much greater brand recognition.