A spa and salon software startup Zenoti Software has raised $20 Mn from Steadview Capital in less than three months after closing a Series C round of funding.
In an official statement, the company said the funding would help it accelerate the pace of innovation and expand into both existing and new geographies. It will also look to continue hiring more talent to back its expansion plans.
In the previous round of funding in May this year, Tiger Global had led a $50 Mn investment, with existing investors Norwest Venture Partners and Accel Partners also joining the round. Till now the company has raised $91 Mn, with its series B funding of $15 Mn coming in 2016.
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The Seattle and Hyderabad-based company was founded in 2010 by Sudheer Koneru, Dheeraj Koneru, Anand Arvind and Saritha Katikaneni. It provides a cloud-based back-end service such as appointment booking, payroll of employees, inventory management and managing financials for cloud-based software for salons, spas, and medi-spas. It also has products for billing, marketing, CRM, and loyalty features.
Zenoti employees around 300 people with engineering and product teams based in India, and the sales team globally. The company offers its services in 44 countries across the globe.
Koneru said the company is looking at expansion opportunities in categories such as pet spa or car spa, and at the same time it will go deeper into the product offering to build a fully automated inventory, with more predictive algorithms. The company also plans to make a few acquisitions to propel its expansion plans.
The SaaS platform claims to be growing at a rate of 130% this year and is projecting a revenue of $120 Mn – $150 Mn over the next two years. In India’s the company’s clients include Lakme, Kaya Skin Clinic, Bodycraft and Bouncer, while in the US, it has signed up Waxing the City, Massage Heights, Mario Tricoci, Prose Boutiques, Sono Bello and Rudy’s Barbershop.
In an earlier interaction with Inc42, Koneru had claimed that Zenoti has helped salon and spa raise their revenues by five to ten percent week over week. “With tremendous momentum of more than 100% growth in the past year and on target to achieve 130% growth in 2019, we’re excited to be leading the transition of this industry to the cloud,” he told Inc42.