SaaS Unicorn Zenoti Raises $80 Mn In Series D From TPG

Spa and salon software unicorn Zenoti Software has raised $80 Mn as part of its Series D funding round. The round, which valued Zenoti at $1.5 Bn was led by TPG, a global alternative asset fund. 

In December 2020, Zenoti had raised $160 Mn in a Series D funding round making it the first vertical software-as-a-service (SaaS) startup in India’s unicorn club. The round was led by Advent International (Advent) through Advent Tech and Sunley House Capital. Along with the participation from Tiger Global Management and Steadview Partners.

In recent years, TPG has invested in Indian startups like Firstcry, Lenskart, Ess Kay Fincorp and Pharmeasy.

Founded in 2010 by Sudheer Koneru and Dheeraj Koneru, Zenoti is an all-in-one, cloud-based software for salons, spas, and medi-spas. It boasts of rich capabilities across appointment scheduling, online booking, billing, built in marketing, inventory management, CRM, and loyalty features.

Following the new funding round, Zenoti will deploy the fund for M&As and provide ESOP liquidity to employees, said the company. The total funding raised by Zenoti till date stands at about $331 Mn. 

Post its unicorn status, Zenoti told Inc42 that the company will be looking to increase its workforce from 580 to 900 by next year, by hiring across the board with a deeper emphasis on core engineering or product roles. This plan will be in lines with Zenoti’s efforts to double its revenue in 2021. Besides this, the company will also expand its latest offerings in fitness and pet grooming or spas.

The company claims over 12,000 business customers in over 50 countries including global brands such as European Wax Center, Hand & Stone, Massage Heights, Rush Hair & Beauty, Sono Bello, Hair Cuttery, Profile by Sanford and, most recently, Toni&Guy. The company makes money by charging a subscription fee per store. It also has a fast-growing payments arm. It also has plans to expand to pet grooming and fitness.