New financing: Zenoti just won $ 80 million to expand its business software product used by more than 12,000 spas, beauty salons, and other wellness companies in 50 countries. The funding comes on the heels of a $ 160 million Series D round raised in December that pushed his valuation past $ 1 billion and pushed Zenoti into Seattle’s elite unicorn club. TPG Capital made the latest investment, which is an extension of the Series D round. Total funding is $ 330 million to date; Zenoti’s valuation is now close to $ 1.5 billion.
The technology: Chains like European Wax Center, Hand & Stone, Massage Heights, Toni & Guy, Gene Juarez, and others use Zenoti’s software for everything from scheduling to payments to inventory. The company makes money by charging a subscription fee per store; it also has a fast-growing payments branch. Revenues doubled in 2020 and is expected to grow 120% in 2021. It has plans to expand into pet care and fitness.
Company Background: Former Microsoft manager Sudheer Koneru he had invested in a chain of gyms, spas and beauty salons in India. That exposed him to outdated back-end systems that are used to help keep businesses running. Koneru later teamed up with his brother, Dheeraj Koneru, another longtime tech industry leader and former Microsoftie. The couple sold their stakes in the spa and salon company and launched Zenoti, betting on a much bigger opportunity.
GeekWire Awards: Zenoti just won the Next Tech Titan category at the GeekWire Awards last month. Past winners include Rover, Convoy, BitTitan, Smartsheet, and Outreach, who won last year and just raised a $ 200 million round.
“We are in the business of helping the beauty industry and the wellness industry,” Sudheer Koneru said during her acceptance speech. “We think this is a beautiful industry because it helps people feel good, it is not just about looking good. We love space and the industry and we believe it has a great purpose in people’s lives. “