Madison Reed raises $33M to expand store footprint
Dive Short:
- Right after choosing a new main financial officer in March, hair shade brand Madison Reed declared it has raised $33 million in new financing, according to a business push launch. The dollars will go to escalating the company’s “successful omnichannel enterprise.”
- The funding was led by Sandbridge Funds and provided participation by Marcy Venture Partners, which was co-established by songs artist Jay-Z.
- Madison Reed ideas to have 80 Hair Color Bar areas opened by the conclude of the year, use 850 new colorists with comprehensive-time advantages and make investments in ground breaking items to grow its portfolio.
Dive Insight:
As in-retail outlet browsing bounces again, Madison Reed is doubling down on its omnichannel system to attain prospects any where they are. The corporation employed previous Dollar Shave Club CFO Jose Zuniga as its new CFO in March, with the intent to support electronic and bodily advancement.
“Madison Reed’s modern omnichannel approach maximizes advantage even though offering a compellingly present day customer expertise throughout the board,” Ken Suslow, Sandbridge Capital founder and taking care of associate, reported in a assertion.
The corporation has more than 60 Hair Shade Bar spots open and is setting up to expand its presence exclusively in New York Metropolis, South Florida, California, Chicago, Washington, D.C. and Texas. Madison Reed is also setting up to expand its wholesale enterprise, which contains companions like Ulta (as properly as its Goal shop-in-retailers) and Amazon.
Madison Reed has been targeted on fast progress more than the last handful of many years, increasing $52 million in February 2021. This latest round brings the firm’s total funds lifted to just about $250 million to date. The company started featuring absolutely free virtual hair shade consultations final yr and commenced marketing men’s hair merchandise in 2020. This is in addition to the company’s membership at-residence hair color supplying. Like numerous suppliers who have subscription-based models, Madison Reed has concentrated on including other searching options to diversify its company.
The hair colour current market is only continuing to mature, predicted to surpass $40 billion by 2023, in accordance to Statista. In actuality, Madison Reed beforehand said it grew in 2020 by 130% and practically doubled its client base. Even with the pandemic’s impression on in-keep retail, the corporation has wager big on physical suppliers over the earlier couple of years even though protecting a strong electronic presence, positioning itself to supply an working experience customized to diverse consumer preferences.
