Diishan Imira analyzed the 6 billion dollar extension and wig market in the United States and felt that something was wrong. The vast majority of hair extensions used in salons-about 95%, according to him, are purchased by customers online or in retail stores that carry these products to the designers who use them to serve the customer. Salons in themselves are not the point of sale, often due to the high cost of human hair.
Simplifying this dynamic offered an opportunity that Imira, 37, took advantage of with the launch of Mayvenn, an Indian human hair supplier founded in Oakland, founded in 2012 with COO Taylor Wang. Over the past four years, the company has accumulated $ 80 million in sales of hair extensions through alliances with hairdressers whose companies trust in the style of these products and who direct their clients to buy hair from the company – essentially recruiting stylists as sellers building websites, offering support in line and 15% discount on each sale, plus sales incentives, such as credit in the store. About 70% of the revenue, says Imira, comes from the network of some 40,000 Mayvenn stylists, the rest from direct to the consumer.
The strategy of Imira and Wang has attracted some serious money for growth. This week, the company announced an investment of 23 million dollars, which will be directed to marketing for clients and designers and will develop new packages that combine hair sales with styling services within the network, at a lower cost.
The influx of capital, which is the Mayvenn B series, increases the company’s global capital growth to 36 million dollars, adding nearly US $ 3 million in resources captured in 2013 and an A series of US $ 10 million in 2015 led by the power of Silicon Valley Andreessen Horowitz. Investors who have bet on the company since its founding include Serena Williams, Cross Culture Ventures and Jimmy Iovine, co-founder of Interscope Records and Beats Electronics. Imira is still the largest shareholder.