Madison Reed has completed a $52 million financing round to fuel its omnichannel expansion and build upon the 130% growth it saw during 2020.
 
The 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.
 
Madison Reed started as a direct-to-consumer business and expanded with a wholesale relationship at Ulta Beauty as well as a growing number of retail locations called Hair Color Bars. Today, the company is a full omnichannel business which gives customers the freedom to color their hair how they want, where they want: at home on their own schedule, or by visiting a Hair Color Bar where they can get their color applied by a colorist. The company operates over 30 four-wall locations in a dozen major metro areas. The brand will have 60 Hair Color Bars by the end of 2021.
 
During the peak of the COVID-19 surge, consumers bought Madison Reed’s hair color kits every five seconds. To meet further demand and seize the moment, the company launched two new products: Madison Reed MR., the brand’s hair color line for men, and Color Therapy, a color-depositing hair mask. In addition, the brand opened 16 new Hair Color Bars.
 
“What 2020 demonstrated is something we’ve always known: hair color is a category that’s essential to every woman,” said Madison Reed founder and CEO Amy Errett. “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.”
 
“We believe consumer behaviors have changed forever and this category is in the epicenter of that change,” Errett added.
 
Madison Reed has continued to offer product and technology breakthroughs, including 1:1 hair color consultations via video with expert colorists as well as a new educational concept called “Hair Color House Parties” that uses Zoom to teach consumers how to color their hair, live, from licensed Madison Reed colorists.
 
“Amy and the entire Madison Reed team have been laser focused on the changing dynamics of consumer preferences,” said Jon Callaghan, co-founder of True Ventures. “Madison Reed has brought transparency to a category begging for it while growing its unique, inclusive, and representatively diverse team internally. Millions of people have benefited from this better, higher quality hair color and care while recreating what their lives look like at home. We’re staying all in with Amy and her team as they continue to show up for consumers in an omnichannel way.”