Hair care brand Madison Reed has raised an additional $52 million in financing to fuel its omnichannel expansion after reporting 130% growth and doubling its consumer base in 2020.
Launched in 2013 as a pure-play DTC business, Madison Reed expanded into wholesale through a partnership with Ulta Beauty in 2017 and recently began opening retail locations, dubbed Hair Color Bars. The company now operates 30 Hair Color Bars across the country and plans to double that by the end of 2021.
With many salons shuttered for much of last year, the brand was well-positioned to capture consumers looking for at-home hair coloring alternatives. During the peak of the COVID-19 surge, Madison Reed reports that consumers bought its hair color kits every five seconds, prompting the brand to expand into hair color for men and hair masks.
“Our business surged as hundreds of thousands of customers across the country turned to a brand they could trust to deliver salon-gorgeous results with a formula made with ingredients they could feel good about,” said Amy Errett, Founder and CEO of Madison Reed in a statement. “We believe consumer behaviors have changed forever and this category is in the epicenter of that change.”
Even as Madison Reed expands into brick-and-mortar the company continues with a digital-first strategy. The brand is a regular on social media feeds where celebrities like Teri Hatcher and Jennifer Lopez tout its ease and efficacy, and the company now offers 1:1 hair color video consultations and hosts “Hair Color House Parties” on Zoom.
The new funding brings the total raised since launch to $199.5 million. This latest round was led by True Ventures, which has also invested in Peloton and Blue Bottle Coffee. The round includes participation from existing investors Norwest Venture Partners, Comcast Ventures and Shea Ventures as well as new investors Goldman Sachs, Motley Fool Ventures, Portfolia Rising America Fund and Portfolia FirstStep Fund.