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Barbershop technology startup theCut sharpens its platform with new $4.5M round – TechCrunch

TheCut, a technology platform designed to handle back-end operations for barbers, raised $4.5 million in new funding. Nextgen Venture Partners led the round and was joined by Elevate Ventures, Singh Capital, and Leadout Capital. The latest budget gives theCut $5.35 million in total funding since founded in 2016, founder Obi Omile Jr. told TechCrunch. Emile and Kush Patel created the mobile app that provides information and reviews on barbers for potential customers while managing appointments, mobile payments, and pricing on the back end.

 

“Kush and I both had terrible experiences with haircuts and decided to build an app to help find good barbers,” Emile said. “We found there were great barbers but no way to discover them. You can do a Google search, but it doesn’t list the individual barber. With that, you can discover an individual barber and discover if they are a great fit for you and won’t screw up your hair.

The app also enables barbers, perhaps for the first time, to have a list of clients, keep notes and photos of hairstyles, and track visits and spending. By providing payments, barbers can also leverage digital trends to provide additional services and extras to bring in more revenue. There is a search function with barber profiles, photos of their work, ratings, and reviews, a list of service offerings, and pricing on the customer side.

Emile said there are 400,000 to 600,000 barbers in the U.S., one of the fastest-growing markets. As a result, the new funding will be used to hire additional talent, market, and grow the country’s business. “We’ve gotten to a place where we are hitting our stride and seeing business catapulting, so we are in hiring mode,” he added.

Indeed, the company has generated more than $500 million in revenue for barbers since its launch and added over 100,000 users each month. In addition, the app averages 1.5 million appointment bookings each month.

Next up, Emile wants to build out new features like a digital store and process more physical payments by rolling out a card reader for in-person payments. TheCut will also focus on enabling barbers to have more personal relationships with their customers.

“We are building software to empower people to be the best version of themselves, in this case, barbers,” he added. “The relationship with customers is an opportunity for the barber to make specific recommendations on products and create a grooming experience.”

As part of the investment, Leadout founder and managing partner Ali Rosenthal joined the company’s board of directors. She said Emile and Patel are the founders that venture capitalists look for — experts in their markets and data-driven technologists.

“They had done so much with so little by the time we met them,” Rosenthal added. “They are creating a passionate community and set of modern, tech-driven features that are tailored to the needs of their customers.”

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