Pangaea Holdings Raises $68M for Men’s Personal Care Brands

Eurazeo Invests $53 Million in Pangaea Holdings

Eurazeo, a global investment firm, has made a minority investment of $53 million into Pangaea Holdings, an e-commerce company based in Los Angeles. Pangaea focuses on the creation of premium personal care brands specifically for men.

Series B Funding Details

This investment forms part of a larger $68 million funding round. It includes $15 million in Series B funding contributed by investors such as Unilever Ventures and GPO Fund, alongside existing backers Base10 Partners and Gradient Ventures. To date, the company has secured a total of $87 million in funding since its inception.

Investor Confidence and Company History

Henri Pierre-Jacques of Harlem Capital participated in both Pangaea’s seed funding round in 2019 and its Series A round in 2020. Having known co-founder Darwish Gani since their college years and collaborated with Richard Hong for the past two years, Pierre-Jacques considers them a remarkably data-driven leadership team with a strong understanding of their target market.

Growth Trajectory and Future Plans

The business demonstrated substantial revenue even at the seed stage and has experienced continued, significant growth. Initially functioning as a brand incubator, Pangaea intends to evolve into a vertically integrated e-commerce platform supporting other brands following this Series B funding. Further expansion and growth are anticipated.

Origins of Pangaea and Lumin

Richard Hong founded Pangaea with the launch of Lumin, a men’s skincare brand utilizing natural formulations inspired by Korean beauty traditions. The concept originated from a shared experience among a group of roommates who discreetly used Korean skincare products, as shared by Gani with TechCrunch.

Expansion and Co-Founding

Darwish Gani subsequently joined Hong as a co-founder to facilitate the business’s scaling, recognizing a broader opportunity within the global e-commerce landscape.

Addressing a Market Need

“Men are increasingly interested in skincare, but often feel hesitant to discuss it openly,” Gani explained. Hong, having grown up in a culture where skincare was more commonplace, aimed to deliver high-quality products presented in an accessible manner, encouraging consistent use.

Proprietary Infrastructure and Brand Development

Pangaea developed its own infrastructure, encompassing warehousing, payment processing, and shipping, to support the growth and scaling of direct-to-consumer brands. Their latest brand, Meridian, offering grooming products, was launched in 2020 and is currently available in over 70 countries.

Global Presence and Workforce

While headquartered in Los Angeles, Pangaea operates primarily as a remote organization. The company employs over 300 individuals across key locations including Los Angeles, Lagos (Nigeria), Singapore, and Europe.

Financial Performance and Future Investments

The company is currently generating positive cash flow. The new funding will be used to strengthen leadership within its brands and propel the company towards its next phase of growth. The goal is to establish “omnichannel male megabrands,” according to Gani. Investments will also be directed towards new product categories, brand development, and potential licensing of their proprietary software.

Partnership with Eurazeo

Gani expressed enthusiasm about collaborating with Eurazeo, recognizing their expertise in building and scaling consumer brands. The firm will assist Pangaea in further developing the Lumin and Meridian brands and accelerating its international expansion.

Eurazeo’s Perspective

Jill Granoff, Managing Partner and Brands CEO at Eurazeo, stated that the company is “well-positioned for future growth.”

“Richard and Darwish have created both a platform and products that effectively address a significant consumer need within a dynamic and expanding market,” Granoff added. “Their achievements in a short timeframe, across various geographies and product categories, demonstrate a strong appeal to consumers globally. Furthermore, they have constructed a highly scalable technology capable of supporting future brand innovation.”