Zenoti, a cloud-based business management solution for spas and salons has managed to secure a fresh $15 million in its Series B round of funding. This round was led by Norwest Venture Partners, with participation from existing investors Accel Partners.
With this freshly minted money, Zenoti plans to expand its client base, drive product innovation with focus on increasing the workforce from the current 140. It also plans to use the funds to accelerate growth and aggresively expand operation to geographical areas beyond Asia — United States and Europe. The company also plans to expand into the fitness and yoga space as well.
Founded in 2010 by Sudheer and Dheeraj Koneru, Zenoti(formerly Managemyspa) was launched to provide an all-in-one cloud solution that helps spas and salons to market and grow their business while managing their operations. The software supports a host of features, including appointment booking, billing through CRM, inventory management and marketing automation that can help them expand their network while increasing outlet level performance.
Zenoti is headquartered in Seattle, but is currently operational in multiple APAC countries including Jakarta, Kuala Lampur, Manila, Hyderabad and Dubai. The company claims to power thousands of spas and salons in over 30 countries. It had earlier received $6 million from Accel to bolster its customer management platform and compete with global players.
With the aim to become the largest software provider in the $15 billion global wellness industry, Koneru says that their average revenue from each outlet in the US has already doubled as compared to its competitors. It has also partnered with large chains, including Massage Green, Massage Heights and Kaya Skin, Enrich Salons, O2 Spas in United States and India respectively.
Commenting on the funding round, Mohan Kumar, Executive Director of Norwest Venture Partners, says,
Zenoti is filling a void for mid to large wellness chains by solving chronic challenges associated with rapid growth. Enterprise brands are starting to understand that Zenoti technology affords increased efficiencies and the seamless ability to protect their brand identities and customer experiences.
Other players in the market are not addressing the need to manage a brand’s distributed operations or provide an integrated view of business performance across multiple locations.
In the U.S market, Zenoti faces direct competition from other SaaS-based wellness software providers, including MindBody and Spabooker. Additional tools for marketing automation and data analytics is what sets Zenoti apart from its competitors.