With revenue exceeding 100 million in 2020, hair dye brand Madison Reed raises $52 million for expansion

According to Forbes, the American DTC hair dye and hair care brand Madison Reed's total sales in online stores and offline stores in 2020 increased by 130% compared to 2019, and its business revenue exceeded 100 million yuan, setting a record. It has just obtained US$52 million in new financing to promote "omni-channel expansion."

( Madison Reed hair color and hair care products)

Madison Reed said that due to the impact of the epidemic social isolation policy, more and more consumers choose to DIY hair dye at home , which has driven the growth of the company's online sales performance. According to Pinterest statistics, since the outbreak of the epidemic, the search volume for hair care on the image social platform has soared by 417%, and the search volume related to hair dyeing has also jumped by 156%.

The company's founder and CEO Amy Errett said that our business is completely different now than it was 18 months ago. At the peak of the epidemic in 2020, Madison Reed sold a box of hair dye kit every 5 seconds , and many consumers who chose to dye their hair at home will continue to insist on dyeing their hair. He said that consumers' consumption habits will not change back to the original in-store consumption model so quickly.

Madison Reed has raised a total of $199.5 million since its founding . Its previous financing rounds have expanded all three of its main sales channels: its DTC independent website, its wholesale business, and its nationwide chain of hair color stores.

With this new round of financing, Madison Reed plans to open more offline hair dyeing shops, increase hair dyeing-related services, recruit more employees and launch more products.

It is reported that Madison Reed currently owns 30 offline hair salons and plans to open 60 by the end of 2021.

Errett told Retail Dive in July that despite the company's growth in online and subscription services, the pandemic has not affected the company's plans to continue expanding its physical stores, and Madison Reed will continue to open 600 stores .

However, in order to adapt to changes in consumer consumption behavior and attract more online consumers, Madison Reed has also launched a Zoom online video consultation service , launched the "Hair Dyeing House Party" series on Facebook live to guide users to DIY hair dyeing at home, and is developing a mobile application .

( Madison Reed Mr., a men's hair color brand from Madison Reed)

In terms of products, Madison Reed also launched the men's hair dye brand Madison Reed Mr. , and achieved a profit of approximately US$2 million in less than a year .

Madison Reed's latest round of financing was led by True Ventures, with continued participation from existing investors Norwest Venture Partners, Comcast Ventures and Shea Ventures, and new investors including Goldman Sachs, Motley Fool Ventures, Portfolia Rising America Fund and Portfolia FirstStep Fund.

Madison Reed

Hair dye brand