Madison Reed raises $33 million to expand store footprint
- After hiring a new chief financial officer in March, hair color brand Madison Reed announced it had raised $33 million in new funding, according to a company press release. The money will go towards growing the company’s “successful omnichannel business”.
- The funding was led by Sandbridge Capital and included participation from Marcy Venture Partners, co-founded by music artist Jay-Z.
- Madison Reed plans to open 80 Hair Color Bar locations by the end of the year, hire 850 new colorists with full-time benefits, and invest in innovative products to expand its portfolio.
Overview of the dive:
As in-store shopping picks up again, Madison Reed is ramping up its omnichannel strategy to reach customers wherever they are. The company hired former Dollar Shave Club CFO Jose Zuniga as new CFO in March, with the intention of supporting digital and physical growth.
“Madison Reed’s innovative omnichannel approach maximizes convenience while delivering a modern and compelling customer experience at every level,” Ken Suslow, founder and managing partner of Sandbridge Capital, said in a statement.
The company has over 60 Hair Color Bar locations open and plans to expand its presence specifically in New York, South Florida, California, Chicago, Washington, DC and Texas. Madison Reed also plans to expand its wholesale business, which includes partners like Ulta (as well as its Target stores) and Amazon.
Madison Reed has been focused on rapid growth over the past few years, raise $52 million in February 2021. This latest round brings the company’s total capital raised to nearly $250 million to date. The company began offering free virtual hair color consultations last year and began selling men’s hair products in 2020. This is in addition to the company’s subscription-based at-home hair coloring offering. society. Like many retailers who have subscription-based modelsMadison Reed focused on adding more buying options to diversify her business.
Hair color market only continues to grow, expected exceed $40 billion by 2023, according to Statista. In fact, Madison Reed said it before. increased by 130% in 2020 and nearly doubled its customer base. Despite the impact of the pandemic on in-store retail, the company has been betting big on physical stores over the past two years while maintaining a strong digital presence, positioning itself to deliver an experience tailored to different customer preferences. clients.