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Mayvenn Lands $40 Million Series C to Support Walmart Expansion

July 15, 2022
July 15, 2022
Mayvenn

Mayvenn, the venture-backed beauty tech company enabling beauty professionals to increase their earning potential, landed a $40 million Series C, bringing the total raised to date by the brand to $76 million. The funds will be used to expanded Mayvenn's Beauty Lounges to 400 Walmart locations.

WHO: Oakland-based Mayvenn was founded in 2012 by Diishan Imira with COO Taylor Wang. Growing up with hair stylists in his family, Diishan witnessed their impact on his local community, as well as their lack of equity in the industry and how underserved they were technologically. Mayvenn offers both an e-commerce tool and a marketplace for salon services, driving new clientele to its stylists. Stylists then can direct their clients to buy from the site and receive a 15% commission for each purchase, plus $100 of free hair for every $600 worth sold.

In partnership with Walmart, the brand has expanded offline through Mayvenn Beauty Lounges that offer clients a new way to buy, with free consultations, in-store shopping, and the ability to book hair appointments with any Mayvenn-certified hairstylist in their area. There are currently five locations in Texas with plans to roll out 400 nationwide. This omnichannel strategy will increase scale significantly, while driving income to tens of thousands of local hair stylists and small salon businesses.

WHY: The new capital will fund the brand's partnership with Walmart to bring tech-enabled, physical beauty experiences into Walmarts across the country. Funds will also be deployed to continue the expansion of Mayvenn's digital platform to provide more productivity tools for stylists.

IN THEIR OWN WORDS: "I couldn't be more excited to partner with Walmart to bring Mayvenn's brand and platform into the real world," says Diishan Imira, CEO and co-founder of Mayvenn. "These Mayvenn Beauty Lounges are more than retail experiences—they drive digital bookings to local small salon businesses, bringing them added income, which is core to our mission. This expansion has the potential to elevate the beauty shopping experience for millions, while also scaling the financial impact to the community. The possibilities are endless from here."

"Mayvenn aims to deliver a first-class beauty experience for women by partnering with stylists and delivering unprecedented economics to these important entrepreneurs," said Ben Horowitz, co-founder and General Partner at Andreessen Horowitz. "The Walmart relationship moves the transaction from the virtual to the physical world and dramatically expands Mayvenn's reach. We believe they are now poised to become a top brand in women's beauty."

Cleveland Avenue, founded by former CEO of McDonald’s Don Thompson, invests in retail technology, and brings immense value to the partnership through its internal consulting firm Edge Consulting, which specializes in retail operations, and has valuable experience working with Walmart. Mayvenn has attracted some of the most prestigious and strategic investors in technology, including a16z, and now by partnering with Cleveland Ave has brought a new dimension of expertise to the business. The investment is additionally part of Goldman Sachs' One Million Black Women initiative, a $10 billion commitment to narrow opportunity gaps and impact the lives of Black women over the next decade across key pillars, including job creation and workforce advancement.

Hillel Moerman, Managing Director within Goldman Sachs Asset Management, said, "In addition to innovating the beauty industry, Mayvenn is creating economic opportunity for independent stylists, who are primarily women of color. We believe that Mayvenn's omnichannel approach, combined with its direct financial impact on local communities, embodies the goals of our One Million Black Women initiative and we look forward to continuing to collaborate with the Mayvenn team as they scale their business.”

"Supporting diverse businesses is a priority for Walmart," said Darryl Spinks, Sr. Director, Walmart Services. "Innovative businesses like Mayvenn bring a fresh perspective to a segmented industry. They are making products and services more accessible while also giving other small business owners an opportunity to grow. We're excited to offer this experience to the community while collaborating with Mayvenn as they grow."

"Mayvenn is a leading innovator in the beauty industry. The Company has a thoughtful and profitable business strategy that also supports diversity, access and entrepreneurship. Cleveland Avenue is thrilled to partner with Mayvenn's leadership team and support brand expansion into retail outlets including the Company's recent partnership with Walmart," said Dr. Mingu Lee, Managing Partner, Cleveland Avenue Tech Fund.

DETAILS:

  • Mayvenn raised a $40 million Series C led by Cleveland Avenue, with participation from the Growth Equity business within Goldman Sachs Asset Management and a16z.
  • To date, Mayvenn has paid out over $35 million to the more than 50,000 hair stylists in its nationwide network. 
  • In November 2018, Mayvenn raised $23MM in a Series B funding round led by Essence Ventures with participation from a16z, Impact America Fund, and Cross Culture Ventures.
  • $3 million in seed funding was raised in 2013.
  • A $10 million Series A in 2015 was led by Andreessen Horowitz.
  • Investors who have laid bets on the business since its founding include Serena Williams, Cross Culture Ventures, and Jimmy Iovine, co-founder of Interscope Records and Beats Electronics. Imira remains the largest shareholder.
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