Summit Partners acquires a minority stake in Hairstory

Hairstory, the detergent-free hair care brand, received a minority investment.

The venture capital firm Summit Partners has acquired a stake in the brand. Financial terms of the deal were not disclosed, although industry sources said the investment reached around $ 30 million.

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Hairstory products are sold on a commission basis from partner hairdressers, as well as directly through its website. Eli Halliwell, CEO of the brand, credits the business model for its growth. Although Halliwell has not commented on sales, sources said the brand is expected to reach $ 30 million in revenue in 2021.

Effective business scaling is Halliwell’s first agenda with recent investment. “One of the biggest challenges we encountered was that we were basically seeded and self-funded, and whenever we stumbled upon something really powerful I had to constantly brake because we would run out of inventory. ” he said. “We will use the capital to build sufficient inventory to make the most of each opportunity. “

The Hairstory brand message, sustainable products that improve hair health with detergent-free formulas, also resonated with investors.

“We believe Hairstory’s differentiated and effective products, customer loyalty, profitability and consistently smart and deliberate growth decisions make it a rare brand,” said Melanie Whelan, Managing Director of Summit Partners, in a statement. . “We are delighted to partner with Eli and this passionate team to support the next chapter of the business: working to roll out a broader growth strategy while fostering product innovation focused on sustainability. “

Halliwell attributes the brand’s high retention rates to the products themselves, which eschew detergents to lessen the effects of over-cleaning the hair. “When you switch from our flagship product, New Wash, to shampoo, you lose the benefits. So we have incredibly high retention rates, and that’s what drove our ability to be profitable, ”he said.

Brand awareness remains one of the brand challenges, and is another target for recent investment. “We’re still going to be very disciplined, but we’re going to be raising awareness a lot more aggressively and helping people understand that shampooing is a problem.”

Sustainability is important to Hairstory, which aims to be the first fully rechargeable brand. It also has a recharge program which it says allows customers to use 90% less plastic and produce 80% less carbon dioxide emissions when cleaning. Its bestseller New Wash is also biodegradable.


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