Madison Reed raises Series G from Sandbridge, Jay-Z's venture firm
Madison Reed, a DTC hair color brand, raised a $33 million Series G round led by Sandbridge Capital, its CEO Amy Errett tells Richard, increasing the company's total funding to nearly $250 million.
- Also participating in the round is Marcy Venture Partners, which was co-founded by Jay-Z, Jay Brown and Larry Marcus, the CEO said.
Why it matters: The fundraising comes amid a growth in this niche consumer space. Hair coloring is expected to grow to nearly $42 billion in 2025, from about $30 billion in 2019, according to market data provider Statista.
Details: Proceeds will go toward opening new stores, Errett said, noting that the company has added 48 locations since March 2020.
- In all, the company has 60 stores, with plans to open another 20 this year. And revenue is expected to grow more than 30% this year, she added.
Of note: This latest round came out of a meeting with Ken Suslow, who founded Sandbridge.
- "It became clear they could help us with our DNA," Errett said, which in retail speak means a combination of the company's mission, values and identity.
- Sandbridge has invested in brands such as Ilia Beauty, Hydrow, Farfetch and The RealReal, among others.
Clicks to bricks: While Madison Reed began life as a digitally native brand, not only has it rapidly opened stores, but it also has a wholesale relationship with retailer Ulta Beauty, including its shop-in-shops at Target.