Spa and salon cloud software startup Zenoti has raised $20 million from Steadview Capital less than three months after it closed a $50 million Series C round of funding, bringing its total money raised to $100 million.
In a previous round of funding in May this year, Tiger Global had led a $50 million investment, with existing investors Norwest Venture Partners and Accel Partners also joining the round. Till now the company has raised a total of $91 million, with its series B of $15 million coming back in 2016.
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.
Sudheer Koneru, its founder and CEO said the company is looking at expansion opportunities in categories such as pet spa or car spa, and at the same time will go deeper into the product offering to build a fully automated inventory, with more predictive algorithms. The company also has 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 projected a revenue of $120 million – $150 million over the next two years.
In India, 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.
Koneru claims 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,”
Owned by Soham Inc., the Seattle and Hyderabad-based company was founded in 2010 by Sudheer Koneru, Dheeraj Koneru, Anand Arvind and Saritha Katikaneni. Zenoti provides a cloud-based back-end service for appointment booking, payroll of employees, inventory management and managing financials for cloud-based software for salons, spas, and medi-spas.
Zenoti employees around 300 people with engineering and product teams based in India, and a global sales team. The company offers its services in 44 countries worldwide.