Cloud-based service provider Zenoti has raised $15 Mn (INR 100 Cr) funding in a round led by Norwest Venture Partners. Existing investor Accel India also participated in the round.
Zenoti is a web-based software for service industries including spas, salons, medical spas, cosmetology clinics, fitness centers, and slimming centers. The software facilitates users’ sale (billing), appointment, inventory, employee management, marketing, customer loyalty, reporting and mobile solutions. According to the company’s website, it provides services to 5000 businesses in 32 countries in the domains of beauty, wellness and fitness.
Founded in 2010 by serial entrepreneur Sudheer Koneru, the company is based in Hyderabad and Seattle with offices located in seven countries. It claims to have a 200 per cent year-on-year growth.
The funding will be used to expand operations in the US and Europe along with an attempt to increase the client base, develop new products and workforce. It currently has 140 members in its team.
More than half of Zenoti’s revenue comes from clients in the US. In India, its clients include Kaya Skin, Enrich Salons, O2 Spas, Naturals and Blush Clinics.
Sudheer Koneru, co-founder, Zenoti said, “The average revenue we are making from each outlet in the US has doubled as compared to our competitors.” With the new injection of funds, he plans to make this company the biggest service provider in the global wellness industry.
Formerly known as ManageMySpa, it raised $6 Mn (INR 38.4 Cr) in 2015 in its Series A round of funding led by Accel Partners.
Mohan Kumar, a partner at Norwest Ventures said, “Very few Indian companies have been able to successfully sell in the US market.” In September 2015, Zenoti also launched an app called TAKE5, enabling salon and spa-goers to find, book and pay for appointments.
Beauty service providers have been in the limelight recently. On demand beauty services provider VanityCube raised $250K (INR 1.7 Cr) in angel funding in March and Vyomo, a mobile based beauty services platform raised $15 Mn (INR 100 Cr) from Naturals.
