- Zenoti – a leading enterprise cloud platform for the beauty and wellness industry – announced recently that it has raised a $160 million Series D funding round at over a $1 billion valuation
Zenoti – a leading enterprise cloud platform for the beauty and wellness industry – announced recently that it has raised a $160 million Series D funding round at over a $1 billion valuation. This round of funding was led by Advent International (one of the largest and most experienced global private equity investors) through Advent Tech and Sunley House Capital (an affiliate of Advent). And Tiger Global and Steadview Partners also participated in the round. Including this round of funding, Zenoti has raised a total of approximately $250 million.
The company powers over 12,000 businesses in over 50 countries. And Zenoti is the leading software of choice for salon and spa chains with 100% year-over-year growth in 2020.
Zenoti’s touchless and mobile solutions serve all aspects of consumer engagement, which allows for easy appointment scheduling, self-check-ins, automatic payments, etc. This funding round enables Zenoti to further accelerate the pace of innovation and reposition the industry to address heightened consumer expectations for health and safety during the global pandemic.
The funding will be used to continue scaling operations, support research and development and to fuel further A.I. innovations, including advanced algorithms leveraging Zenoti’s rich enterprise system data to optimize customer employee scheduling, inventory management, marketing, and dynamic pricing to enhance profitability and efficiency. Zenoti is also going to pursue inorganic growth opportunities.
Zenoti’s co-founders have firsthand experiences with industry challenges, combined with their deep fluency in enterprise software and it has resulted in a powerful and cloud-based solution engineered for reliability and scale, harnessing the power of enterprise-level technology for businesses of all sizes. And Zenoti is proud to serve the growing needs of the industry and support a successful portfolio of global brands including European Wax Center, Hand & Stone, Massage Heights, Rush Hair & Beauty, Sono Bello, Hair Cuttery, Profile by Sanford, and Toni&Guy.
This investment marks Advent’s seventh growth equity investment this year. And in addition to Advent’s long history of technology investing, the firm also has significant investment experience in the beauty and personal care industry, most recently with its acquisition of Olaplex, a prestige and professional hair care brand.
KEY QUOTES:
“Zenoti remains committed to helping businesses find their greatness and achieve better business performance including higher revenues and increased operating margins, while enabling our industry to set new standards for the consumer experience. Our industry, one traditionally slow to progress technologically, is passionately embracing it in the wake of COVID-19 in order to seamlessly and safely connect with customers.”
– Sudheer Koneru, CEO at Zenoti
“The wellness industry is ripe for disruption, particularly as COVID-19 has made it more important than ever to eliminate unnecessary face-to-face interactions wherever possible. We are seeing businesses embrace Zenoti’s technology to help pivot and strengthen their offering and we are impressed by the company’s growth over the last year, particularly among some of the most established brands in the industry. We are incredibly excited about Zenoti and believe the company has significant runway for growth.”
– Eric Wei, a Managing Director on Advent’s technology team in Palo Alto
