Strengthening Hadwiger's conjecture, Gerards and Seymour conjectured in 1995 that every graph with no odd $K_t$-minor is properly $(t-1)$-colorable, this is known as the Odd Hadwiger's conjecture. We prove a relaxation of the above conjecture, namely we show that every graph with no odd $K_t$-minor admits a vertex $(2t-2)$-coloring such that all monochromatic components have size at most $\lceil \frac{1}{2}(t-2) \rceil$. The bound on the number of colors is optimal up to a factor of $2$, improves previous bounds for the same problem by Kawarabayashi (2008), Kang and Oum (2019), Liu and Wood (2021), and strengthens a result by van den Heuvel and Wood (2018), who showed that the above conclusion holds under the more restrictive assumption that the graph is $K_t$-minor free. In addition, the bound on the component-size in our result is much smaller than those of previous results, in which the dependency on $t$ was non-explicit. Our short proof combines the method by van den Heuvel and Wood for $K_t$-minor free graphs with some additional ideas, which make the extension to odd $K_t$-minor free graphs possible.