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15 Dec

Facial Spa Heyday Raises $12 Million – WWD

Facial Spa Heyday Raises $12 Million

Facial Spa Heyday Raises $12 MillionIn the newest evidence that med spa services are increasingly catching the eyes of investors, Heyday has raised a $12 million Series B extension.

The raise was led by existing investor, Level 5 Capital Partners (L5), nearly two years after Heyday’s initial $20 million Series B.

With this capital injection, Heyday, which launched in 2015, plans to take a position in franchise expansion and support.

While it has 10 owned and operated salons in Latest York City, Los Angeles and Philadelphia, the corporate made the choice to go down the franchise route around 2018 and has seven locations which might be franchises.

That number is about to rapidly increase next 12 months, with Heyday planning to open greater than 30 more franchise locations, with a complete of 135 committed franchise units on the horizon in markets including Denver, Boston, Austin, Texas, and Phoenix.

“The money will get us through to profitability, which for us we see in 2024. With franchising specifically, there’s so many investments you want to make upfront of door openings.

Now we have 30 door openings next 12 months and just given the actual estate timetable that’s reasonably so much so there’s obviously numerous investments that we made for this 12 months,” said Adam Ross, cofounder and chief executive officer of Heyday, in an interview.

Along with driving Heyday’s aggressive franchising efforts, the funds shall be utilized to propel in-house innovation and the expansion of service offerings, with plans to launch a line of skincare products in 2023, in addition to tech advancements, product development and hiring.

Ross added that revenue is now back in keeping with pre-COVID-19 levels, after the corporate was hit hard in the course of the pandemic.

“In COVID-19, I don’t think we might have been in a worse industry….People could get Botox, but people couldn’t get facials. It was tough for us — Latest York doors were closed for seven months, Philadelphia 14 months and Los Angeles 16 months

— so [a] very long time being closed,” he said. “We were one in every of those corporations that didn’t immediately bounce back to pre COVID-19 levels. It’s been more like month on month on month, but what I can let you know is that our revenue is back in keeping with pre-COVID-19 levels.”

Of the investment, Chris Kenny, managing partner of L5 Capital, noted: “We’re excited to proceed to take a position in Heyday given the clear consumer demand signal we’re seeing beyond its origin markets of NYC and L.A.

Heyday has a transparent path to category leadership in coveted consumer segments with 40 premium franchise shops open by the tip of 2023 and significant first mover advantage within the service-led skincare segment.”

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