Madison Reed is growing its direct-to-consumer business, including its physical store portfolio.
The digitally native, premium beauty brand, which makes and markets its own hair color products, has secured $33 million in new financing led by Sandbridge Capital, with participation from Marcy Venture Partners. Madison Reed said it plans to leverage the two firms’ global expertise across the retail and beauty space to scale its successful omnichannel business.
The funding will accelerate the growth of Madison Reed’s Hair Color Bar store concept, which the company plans to expand from its current 60-plus locations to 80 outposts by the end of the year The growth will include further expansion in New York City, South Florida, California, Chicago, Washington, D.C., and Texas.
The company said it also plans to hire 850 new colorists in 2022, who will earn three times more than in a traditional salon, while receiving full-time benefits.
Founded in 2013, Madison Reed has evolved from an online direct-to-consumer brand into an omnichannel business that operates its own retail salons and also sells its products through wholesale partners that include Ulta and Ulta Beauty at Target and Amazon.com. The company sells more than 55 shades of “luxurious prestige” hair colors that are made without ammonia, parabens, resorcinol, PPD, phthalates, and gluten, along with related hair-color products.
“Madison Reed was built on the belief that salon-gorgeous hair color should be convenient, affordable and made with ingredients women can feel good about,” said founder and CEO Amy Errett. “As we continue to grow our geographic and retail footprint, we couldn’t be more excited to partner closely with Sandbridge Capital and Marcy Venture Partners in this chapter of expansion. Their deep retail and beauty experience will be critical as we enter our next stage of growth.”
In addition to its Hair Color Bar business, Madison Reed is using this new round of financing to grow its omnichannel offerings and expand the company’s color, care and maintenance product portfolio through new innovations.
“We are highly enthused to be partnering with Amy and the exceptional Madison Reed team as the brand continues to disrupt the industry with its dedicated focus on delivering only the highest quality ingredients to the hair care market,” said Ken Suslow, founder and managing partner, Sandbridge Capital. “Madison Reed’s innovative omnichannel approach maximizes convenience while delivering a compellingly modern consumer experience across the board. Sandbridge is proud to join the Madison Reed team in support of their important category-defining mission.”
In March, Madison Reed hired Jose Zuniga as CFO. Zuniga hailed from Dollar Shave Club, and is tasked with driving Madison Reed’s omnichannel expansion.