Dive Brief:
- Hair care brand Odele secured a minority investment from growth-equity firm Stride Consumer Partners, according to a Thursday press release. Terms of the investment were not disclosed, though the company described it as "significant."
- Odele — which launched in January 2020 — plans to use the capital for key business areas including marketing, talent and product innovation, per the release.
- The brand’s co-founders Lindsay Holden, Britta Chatterjee and Shannon Kearney remain the majority shareholders.
Dive Insight:
Private equity capital was of specific interest to Odele as it looks to grow sustainably.
“We're dedicated to building a brand that will last for generations—and that takes patience and sometimes restraint, which isn't always in alignment with the objectives and speed of private equity,” Chatterjee said in a statement. “We were drawn to Stride because they understood our vision and business philosophy and shared our commitment to people and the planet.”
The Minneapolis-based hair care brand boasts a “thriving” direct-to-consumer business, per its release, and sells via wholesale with retailers including Target and CVS Pharmacy. Odele earlier this year began selling through Ulta Beauty in stores and online.
Odele noted it achieved 55% year-over-year growth from 2022 to 2023, which was attributable in part to its understanding of its core customers.
“We have seen this market segment thrive at prestige price points and are thrilled that the Odele team has made performance-first clean formulas accessible,” Nicole Fourgoux, Stride operating partner, said in a statement. “We know that Odele's positioning has huge potential in the modern marketplace."
The new funding comes as other hair care brands have expanded their businesses this year.
Jennifer Aniston’s hair care brand LolaVie began selling through Ulta in May, marking the DTC company’s first wholesale deal. Bath & Body Works expanded its offerings, announcing in May that it would start selling hair care products in 560 stores this summer. And Ceremonia in July opened its first brick-and-mortar store in New York City’s SoHo neighborhood.
