Key Takeaways
- Crown Affair has closed a Series C funding round led by Stride Consumer Partners aimed at expanding its prestige haircare brand.
- The company has experienced strong growth, projecting revenue to reach $40 million to $50 million this year.
- Focus areas include enhancing productivity in retail, broadening brand awareness, and introducing new products to a wider audience.
Funding and Growth Insights
Crown Affair, known for its innovative approach to haircare and air drying, has successfully closed a Series C funding round led by Stride Consumer Partners. This marks Stride’s entry into prestige haircare, although financial details of the investment were not released. Stride typically invests between $15 million and $100 million into brands generating approximately $10 million to $150 million in revenue.
Founded by Dianna Cohen in 2020, Crown Affair has cultivated a strong following for simplifying haircare routines through products like The Dry Shampoo and The Leave-In Conditioner. The brand gained momentum after Cohen published a Google Doc listing her preferred products, highlighting the complexity many women faced in their haircare regimes.
CEO Elaine Choi noted that Crown Affair is disrupting a traditionally salon-driven industry by allowing consumers to discover and personalize their haircare, akin to the democratization seen in skincare and makeup.
The brand’s retail presence notably expanded in 2022 when it reached nearly 60 Sephora locations, capitalizing on heightened consumer interest in haircare during the pandemic. According to reports, Crown Affair generated about $20 million in revenue in 2024, with projections indicating potential growth to $30 million next year. Some industry sources predict topline sales could potentially reach between $40 million and $50 million this year.
Sales were previously split evenly between direct-to-consumer and retail channels; however, the mix is anticipated to shift toward retail as the brand heightens its distribution efforts. Recent strategies include the rollout of endcap placements in Sephora stores nationwide.
According to Nicole Fourgoux from Stride, the priority for Crown Affair moving forward includes fostering brand awareness and consumer discovery. This involves broadening the brand’s reach and introducing new consumers to its offerings.
Choi expressed concerns about potential distractions during fundraising but strategically narrowed down investor options to those aligned with its category. The partnership with Stride arose from a long-standing relationship, allowing Crown Affair to focus on core business operations.
Going forward, the brand aims to enhance retail productivity through a three-pronged strategy: emphasizing core hero products, increasing basket sizes, and diversifying its customer base to attract thicker and curlier hair types. Crown Affair typically launches about two major products annually, focusing on quality over quantity.
As consumer values evolve, industry experts note that haircare is transitioning similarly to skincare, with an increased emphasis on education and a more holistic approach to self-care. This “skinification” movement is a key trend influencing haircare’s recent growth.
Jaclyn Johnson, a participant in Crown Affair’s early investments, believes the brand could aspire to become a hallmark of emotional connection in haircare, similar to Aesop. Despite the competitive landscape, which includes celebrity and biotech-backed brands, Johnson acknowledges the importance of maintaining brand “coolness” as it scales—a challenge many modern beauty brands face.
Overall, Crown Affair’s evolution from cult favorite to a substantial player in the haircare industry reflects a changing consumer landscape and strategic growth initiatives.
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