Digital native prestige beauty brand Madison Reed has raised $33 million in new financing led by Sandbridge Capital, with participation from Marcy Venture Partners. Through this strategic investment, Madison Reed will leverage the investors' global expertise across the modern retail and beauty space to increasingly scale its omnichannel business, according to a news release from the company.
Since launching in 2014, Madison Reed has upped the ante with its prestige product portfolio, coupled with its omnichannel business model comprising its direct-to-consumer offering, nationwide retail footprint and brick-and-mortar Color Bar business, which now spans more than 60 locations. Madison Reed is known for its tech innovations, such as the first-ever chatbot to analyze selfies and suggest hair color matches, and an augmented reality tool that lets consumers virtually try on hair color shades via digital devices.
“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,” said Amy Errett, CEO and founder of Madison Reed, in the release. “Their deep retail and beauty experience will be critical as we enter our next stage of growth."
This funding will accelerate Madison Reed's Color Bar growth, as the company plans to operate 80 locations by the end of 2022, to give consumers access to more affordable salon-style hair color, applied by a licensed professional, requiring less time than traditional salons. The company also plans to hire 850 new colorists in this year, who will earn 3x more than in a traditional salon, according to the company. The key regions Madison Reed is targeting further expansion in includes major hubs such as New York City, South Florida, California, Chicago, Washington, D.C. and Texas.
In addition to its Color Bars, 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 that are smart 8-free and Leaping Bunny certified. This growth consists of Madison Reed's established wholesale business in retailers including Ulta and Ulta Beauty at Target, along with its online offerings at Madisonreed.com and Amazon.com.
In March, Madison Reed hired former Dollar Shave Club executive Jose Zuniga as its chief financial officer. Zuniga is tasked with driving Madison Reed's omnichannel expansion.