The funding was led by Sandbridge Capital, with participation from Marcy Venture Partners. Madison Reed, which is known for its hair color delivery service, plans to scale its omnichannel business with the new funding, leveraging Sandbridge Capital and Marcy Venture Partners' global expertise across the modern retail and beauty space. Sandbridge’s portfolio includes skin care brands and fashion retailers.
The funding will also accelerate the growth of Madison Reed’s Hair Color Bar business, and the company plans to operate 80 retail locations by the end of 2022. Hair Color Bar allows customers to get their hair color applied by a licensed professional for a lower price than traditional salon experience.
"Madison Reed was built on the belief that salon-gorgeous hair color should be convenient, affordable and made with ingredients women can feel good about,” Amy Errett, CEO and founder of Madison Reed, said in a statement. “We have achieved this by showing women that Madison Reed products and services give them agency and autonomy when it comes to coloring their hair, with high-quality results through our at-home products or in our 60-plus nationwide Hair Color Bar locations.”
As the company grows its retail footprint, Madison Reed plans to hire 850 new colorists this year. The company boasted employees in this role can make three times the wages of a traditional salon. Madison Reed is targeting further expansion in key regions, including New York City, South Florida, California, Chicago, Washington, D.C. and Texas.
Beyond its Hair Color Bar business, the funding will support the company’s omnichannel growth, as well as expand the company's color, care and maintenance product portfolio. Madison Reed also plans to grow its wholesale retail business with Ulta and Ulta Beauty at Target, plus its direct-to-consumer channels on its website and on Amazon.
The news comes after Madison Reed tapped Jose Zuniga as its new chief digital officer in March. Zuniga joins the beauty brand from Dollar Shave Club. In his new role, he is responsible for driving Madison Reed's omnichannel expansion.