Leading masstige hair care brand Odele has revealed a strategic move with an undisclosed minority investment from private equity firm Stride Consumer Partners. Recognized for its successful investments in renowned beauty brands such as Tatcha, First Aid Beauty, Patrick Ta, and Drybar, Stride’s contribution includes securing two board seats within Odele.
Odele, co-founded by Britta Chatterjee, Lindsay Holden, and Shannon Kearney in 2020, is set to retain the majority of shares as it welcomes Stride Consumer Partners into the fold. The collaboration is expected to bring valuable insights and support to Odele’s continued growth and development.
The decision to seek a strategic partner was driven by Odele’s exploration of various options, ranging from credit lines to permanent debt and independent business bootstrapping. Chatterjee explained, “We cast a pretty wide net, and what we were really looking for was a partner to join us at the boardroom table. It was really about finding the right partner that saw brand building the same way we did; that wasn’t going to be in a massive rush for growth.”
With Odele’s primary revenue source being wholesale partnerships with major retailers like Target, Ulta Beauty, and CVS, the brand is poised to achieve notable sales milestones. Projections indicate sales surpassing $30 million in 2023 and exceeding $40 million in 2024. The minority investment from Stride Consumer Partners is earmarked for strategic initiatives, focusing on marketing, talent acquisition, and product innovation.
Chatterjee emphasized the importance of the equity decision, noting, “We’re going to try a lot of things, and not everything is going to work. That was part of what drove … an equity decision … because every time we looked at debt, that carrying cost of interest was just too great to justify.” As Odele continues its trajectory of success, the collaboration with Stride Consumer Partners is expected to fortify the brand’s position in the competitive beauty industry.
