Jay-Z backs Madison Reed in $33 million magnificence model funding
Madison Reed Inc. introduced a $33 million funding led by Sandbridge Capital, with participation from media mogul Jay-Z’s Marcy Enterprise Companions.
The corporate plans to make use of the brand new capital so as to add 20 retail places and 850 licensed colorists in key hubs together with New York Metropolis, South Florida, California, Chicago, Washington D.C. and Texas, in accordance with an announcement. It’s additionally in search of to spice up its digital enterprise, and in March employed Greenback Shave Membership’s Jose Zuniga as chief monetary officer.
Madison Reed Inc. ranks No. 699 within the 2022 Digital Commerce 360 High 1000.
Based in 2013 in San Francisco, the corporate operates 60 hair salons throughout the U.S. Its companies vary from roots protection to high-end highlighting known as balayage. Madison Reed’s hair colour merchandise are offered at Ulta, Ulta at Goal, on Amazon, by different retailers, and on its web site. The corporate additionally has a subscription enterprise. The Collection G funding brings the corporate’s whole capital raised to about $220 million.
On advertising campaigns, the corporate has labored with influencers, together with actuality TV star Kyle Richards of “The Actual Housewives of Beverly Hills.” It additionally labored with the superstar hairstylist for Jessica Chastain, whose hair was glossed with Madison Reed for the Oscars, in accordance with the corporate.
Valuation
Founder and CEO Amy Errett declined to touch upon the corporate’s valuation. However the analysis agency Pitchbook pegged it at $568 million final September.
The enterprise capital business as a complete has been rising its Collection F and G investments, with a whole lot of thousands and thousands of {dollars} raised per spherical, in accordance with Pitchbook. However Errett mentioned her foremost aim in taking the $33 million funding was so as to add the experience of Sandbridge Capital. It has backed shopper corporations like The RealReal and Bonobos, and Marcy Ventures, which is an investor in Savage x Fenty and Gopuff, in accordance with Crunchbase. Each funding corporations are taking board observer seats at Madison Reed.
“I’m not within the enterprise of elevating tons of cash if I don’t have to,” mentioned Errett. She can also be a enterprise companion at True Ventures, one in every of Madison Reed’s board members and its earliest investor. “I’m within the enterprise of elevating sufficient cash in order that the corporate can function and develop. We have now a really vital base of enterprise that generates prime line income.”
Errett defined that though the variety of shops grew fivefold in the course of the pandemic, they’ll take time to change into worthwhile. Nonetheless, she’s assured the corporate is on the proper path.
“Our largest problem now’s staffing,” she mentioned. “We’ve additionally needed to get very nimble about sourcing from a number of distributors,” Errett added, citing shortages of gloves and containers.
Keep on prime of the newest developments within the ecommerce business. Join a complimentary subscription to Digital Commerce 360 Retail Information.
Favourite
