Prestige hair color brand Madison Reed announced a growth capital raise of $51 million led by existing investors: Norwest Venture Partners and True Partners, with participation from Comcast Ventures. One new investor, Meaningful Partners, also joined the funding.
The investment will allow Madison Reed to accelerate its omnichannel plans, which include the following:
- Online, plans include expanding its suite of proprietary hair colors, introducing new products, utilizing television advertising as a new customer acquisition channel and building upon its reputation as a beauty innovator by unveiling new technology.
- In the retail space, Madison Reed Color Bars will grow to 40 locations nationwide by the end of 2020.
- On the wholesale front, after two years of successful collaboration, Madison Reed now has an exclusive partnership with Ulta Beauty, both online and in stores.
The C-suite will expand as well with the hiring of chief operating officer, Brian Bouma and chief financial officer, Carrie Kalinowski. Chosen for their expertise in rapid expansion and strategic growth, Bouma and Kalinowski will join Madison Reed CEO and founder Amy Errett in executing its omnichannel strategy.
"Brian and Carrie join an immensely talented C-suite. With their experience, Madison Reed is uniquely positioned to scale and execute our omnichannel strategy," said Amy Errett. "Our goal is to meet the needs of our customers wherever it is most convenient for them, be that at home, in our Color Bars or at a top beauty retailer such as Ulta. We are truly channel agnostic, which is a first for the hair color industry, as is our creation of a prestige hair color sold directly to consumers."
"Madison Reed's omnichannel strategy makes them one of the most exciting brands in beauty, and we are proud to be their partner," said Jeff Crowe, managing partner at Norwest Venture Partners. "Amy has turned her vision for Madison Reed into a nationwide phenomenon and now leads the hair color sector in innovation and growth."
"It's our pleasure to continue to support the Madison Reed team, Amy, and her world-class leadership team as they expand the brand's offerings and open the doors to additional Color Bars across the country," said Jon Callaghan, co-founder of True Ventures. "Next-generation brands like Madison Reed inspire a new kind of relationship between consumer and brand, and are redefining what is possible in large categories like beauty. We're thrilled for Amy and the entire crew at Madison Reed as they uplevel, yet again."