SaaS start-up, Zenoti enters Unicorn Club with $160M funding in Series D round

Source: GetApp

Zenoti is the number one Software as a Service (SaaS) company for salons, Spas and medical spas with over ten thousand customers in over fifty countries all around the world.

The software company has recently announced to raise INR 160 million in its latest Series D funding round led by US-based private equity firm, Advent International Private Ltd. through its technology arm, Advent Tech and subsidiary Sunley House Capital Management LLC.

The funding round also saw participation from existing backers Steadview Capital- Hong Kong-based asset management company and New York-based Tiger Global Management.

It is also significant to mention that this latest infusion of funds rose the company’s valuation at over USD 1 billion which means that Zenoti is now a member of the prestigious Unicorn Club.

Zenoti was previously known as ManageMySpa and it provides a one-stop, all-in-one software solution for spa, salon and medical spa industries. The SaaS platform provides these industry players with software tools to enhance their unit-level performance while expanding their network base. The start-up also supports Small and Medium Enterprises to help them grow their clientele and manage their day-to-day operations using software-as-a-Service.

Furthermore, the start-up enables its clients to manage all their day-to-day operations through a well-built comprehensive mobile software that enables digital appointment bookings and Customer Relationship Management, Proof Of Concept (POC), inventory and employee management, marketing plans and much more.

All in all, Zenoti works towards decreasing costs, streamlining customer services into one mobile application while enhancing customer experience and retention. The start-up enables over 12,000 offline- brick and mortar storefronts to digitally expand their operations on a global platform.

When asked about the latest infusion of funds, the company mentions utilizing the money to expand its operations in overseas markets of Europe and South America. Koneru, CEO, Zenoti mentions targeting employee count increase from 550 to 900 in the next two years i.e., 2022, according to Live Mint.

Prospects of Zenoti’s business include expansion through Mergers and Acquisitions as it aims to take over two-three companies operating in similar workspace by the next Financial Year. Furthermore, the SaaS start-up aims to enter into newer segments such as physical therapy, pet spas and fitness as well as an expansion plan.

American Venture Capital Firm, Accel was one of the earliest investors of Zenoti. Shekhar Kirani, partner at Accel explained the business strategy behind Zenoti’s success, he says that when Zenoti entered newer segments of the market, the right thing it did was to target the biggest clients in that respective sector. He further added that the company built a generic SaaS solution that could be used in multiple segments without many tweaks and this enabled the smooth expansion of its business in different geographies.