Led · Series D · Jan 2019

Madison Reed sells premium hair-color products and services via a digitally enabled omni-channel model that includes a direct-to-consumer subscription, branded Madison Reed Hair Color Bars, and retail distribution at Ulta Beauty. Its products feature a proprietary Smart-8 Free formula and proprietary color‑matching technology, supported by on-call colorists for at‑home customers. The company operates more than eighty hair color bars nationally and continues to expand its retail channels. Madison Reed offers both at-home kits and in‑salon professional application, positioning itself as a prestige hair color brand. The company recently secured growth capital to fund customer acquisition and channel expansion. No revenue or user metrics were disclosed in the article. Madison Reed sells hair-color products direct-to-consumer online, via Amazon, and through retail partners while also operating licensed professional color bars. The company has opened more than 60 color bars and established a wholesale presence with Ulta and a related Target deal. Leadership says the bars deliver professional color more quickly and cost-effectively than traditional salons, and the brand is pursuing a larger retail footprint. Management plans to add 20 more color bars, hire 850 colorists, and target markets including New York, South Florida, California, Chicago, Washington, DC and Texas, with a forecast of 100 stores by 2023. The company is also eyeing expansion into men’s hair color and additional product launches. Gross product margins have grown to over 80% and revenue doubled over the past two years; Jose Zuniga was hired as CFO in March to lead omnichannel expansion. Madison Reed sells salon-quality hair color formulated with a Smart 8‑Free formula and distributes its products direct-to-consumer, via Ulta Beauty, and through Madison Reed Hair Color Bars. The company combines proprietary color-matching technology with on-call colorists for at-home use and offers in-person color services at its Hair Color Bars. In 2020 Madison Reed grew 130 percent and nearly doubled its customer base; during the COVID-19 peak customers bought its hair color kits every five seconds. To meet demand it launched two new products—Madison Reed MR. for men and Color Therapy, a color-depositing mask—and opened 16 new Hair Color Bars. The company offers 1:1 video consultations with expert colorists and runs live educational "Hair Color House Parties" via Zoom. Madison Reed operates over 30 four-wall locations in about a dozen major metro areas and planned to reach 60 Hair Color Bars by the end of 2021. Madison Reed is a prestige hair color company that offers a proprietary hair-color formula, color-matching technology and on-call professional colorists, with product delivered to customers. The company also operates Madison Reed Color Bars. It is led by CEO and Founder Amy Errett, with Brian Bouma as COO and Carrie Kalinowski as CFO. Madison Reed raised funds to expand its suite of proprietary colors and introduce new products. The company plans to use television advertising as a new customer-acquisition channel. It intends to grow its physical footprint from six to 40 locations nationwide by the end of 2020; Color Bars were open in six locations in New York City and San Francisco at the time of the raise. Madison Reed makes direct-to-consumer "prestige" hair products, including 45 shades of permanent hair color, eight shades of gloss, liquid and powder root-touch-up products, and shampoos and conditioners for color-treated hair. The company sells hair color kits exclusively through its site (single boxes or subscriptions) and offers 12 colors at Ulta. About 70% of its business is recurring; the company is four years old, has an 85-person team, and CEO/founder is Amy Errett. Madison Reed reports that its business has continued to double year over year, but does not disclose revenue or profitability publicly. The company is rolling out brick-and-mortar "color bars" after successful pop-ups, opening a San Francisco location and planning 25 more beginning in September. Each color bar is targeted at ~1,500 square feet with eight chairs, staffed by licensed colorists trained by the company; sessions are priced at $60 for 60 minutes and the company has built tech for scheduling, merchandising and color quizzes.