Prestige hair color brand Madison Reed has secured $52 million in funding, a step that will allow the company to continue its omnichannel expansion and innovate in the at-home hair coloring space. The brand’s hair color is currently offered online at Madison-Reed.com, Ulta Beauty and in Madison Reed Hair Color Bars nationwide.
In 2020, the brand experienced 130 percent growth, surpassed $100 million in revenue and doubled its customer base. At the peak of the pandemic, the company said consumers were purchasing Madison Reed hair color every five seconds.
“What 2020 demonstrated is something we’ve always known: hair color is a category that’s essential to every woman,” said Amy Errett, Founder and CEO, Madison Reed. “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.”
To keep up with demand, last year Madison Reed launched two new products: Madison Reed MR., a hair color line for men, and Color Therapy, a color-depositing hair mask. The brand also opened 16 new Hair Color Bars, bringing its total physical locations 30, with 30 more planned by the end of 2021. In addition to its stores, Madison Reed offers 1:1 video hair color consultations with expert colorists as well as Zoom-hosted “Hair Color House Parties” to teach consumers in a live format how to color their hair from licensed Madison Reed colorists.
The financing round was led by True Ventures, and included participation from Norwest Venture Partners, Comcast Ventures and Shea Ventures — all of which have invested in earlier rounds. New investors include Goldman Sachs, Motley Fool Ventures, Portfolia Rising America Fund and Portfolia FirstStep Fund. The new financing brings its total capital raised to $199.5 million.