It's time for consumer products companies to think below the male waist, and for investors to get in on that trend, according to Manscaped founder Paul Tran.
"We tapped into a market that was underserved. There was no brand before under the circumstances. But fast forward to about three years later and we are now the de-facto standard for male groin care," said Tran on Yahoo Finance Live.
Tran — who founded Manscaped in 2016 — and his team are about to put investors' interest in male groin care to the test.
The consumer products — which sells grooming hardware under catchy names such as the "Lawn Mower" (pubic hair trimmer) and the "Weed Whacker" (nose hair trimmer) — recently disclosed plans to go public by merging with a SPAC dubbed Bright Lights Acquisition Corp (BLTS). Manscaped expects the deal to close in the first quarter of 2022.
Manscaped is being valued at $1 billion, otherwise known as unicorn status. The company anticipates receiving $305 million in gross proceeds from the deal and being debt free by the closing of the transaction.
As detailed in its investor presentation, Manscaped has pushed into new areas such as ball spray toner, ball wipes, lip balm and anti-chafing ball deodorant. The company said it has a robust product pipeline, one that will likely encompass more personal care products that focus on other male body parts and their needs.
Manscaped said it could reach $508 million in annual sales by 2023, up from a $290 million estimate for 2021. Adjusted operating profits are projected to hit $59 million by 2023, up from an estimate of $3 million or this year.
Said Tran of his personal story creating Manscaped, "I have always been an entrepreneur. I was five years old when I came to this great nation [from Vietnam]. I love being an entrepreneur in this amazing country. I always started businesses. It was Manscaped that was looking at the male body, going from head to toe, you realized there was a brand and a product for every single need that you can think, but there was a wide space in the groin. So the hypothesis was either dudes weren't practicing this hygiene behavior, or there was no market for it. Once you start creating products for it, you quickly realize there is a huge market for it."