New funding: Zenoti just reeled in $80 million to expand its enterprise software product used by more than 12,000 spas, salons, and other wellness businesses across 50 countries. The funding comes on the heels of a $160 million Series D round raised in December that pushed its valuation past $1 billion and thrusted 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 near $1.5 billion.
The tech: Chains such as 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 arm. Revenue doubled in 2020 and is expected to grow 120% in 2021. It has plans to expand to pet grooming and fitness.
Company background: Former Microsoft manager Sudheer Koneru had invested in a chain of health clubs, spas and salons in India. That exposed him to the outdated back-end systems used to help keep the businesses running. Koneru then teamed up with his brother, Dheeraj Koneru, another longtime tech industry leader and former Microsoftie. The pair sold their stakes in the spa and salon company and launched Zenoti, betting on a much larger opportunity.
GeekWire Awards: Zenoti is fresh off its Next Tech Titan category win at the GeekWire Awards last month. Past winners include Rover, Convoy, BitTitan, Smartsheet, and Outreach, which 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 his acceptance speech. “We think this is a beautiful industry because it helps people feel good, it’s not just about looking good. We love the space and industry and we think it serves a big purpose in people’s lives.”