Consumer products maker Marico has bought a strategic 45 per cent stake in Ahmadabad-based Zed Lifestyle for an undisclosed sum.
Marico said with this the company taps into the fast growing online male grooming segment.
The equity stake shall be acquired over two years through primary infusion and secondary buy outs, Marico said in a statement.
Zed Lifestyle owns Beardo, a male grooming brand founded in June 2016.
"The Rs 3,200-crore male grooming market, growing at a double digit CAGR, is strategic category for Marico," it said.
"Marico views this investment in Zed Lifestyle as a stepping stone towards its ambition of strengthening its presence and widening its portfolio in this segment."
Beardo have product lines such as growth oil, wax and shampoo for beard, wax and serum for hair, lotion, soap and facewash for skin.
It has a strong presence in online trade and earns almost 75 per cent of revenue from this channel, the statement said.
"This partnership will help us access the emerging niches at the premium end and will turbocharge our digital marketing and social media engagement capability. This is also in line with our emerging focus of venture investments into start-ups to incubate new engines of growth," Saugata Gupta, MD&CEO, Marico said.
Marico is present in India through its Set Wet brand in the mass segment and has plans to expand into categories beyond deodorants and gel.
Ashuthosh Valani, CEO Zed Lifestyle said Marico is a strategic partner to help the company broaden its market segment and significantly grow brand.