[Funding] SaaS Startup Zenoti steps into the unicorn club with Series D raise of $160 million led by Advent International

Software-as-a-service (SaaS) firm Zenoti has raised $160 million as part of its Series D round. The round was led by private equity firm Advent International, through Advent Tech and affiliate Sunley House Capital. With this, the cloud software provider to the beauty and wellness industry has reached a valuation of over $1 billion. Existing investors Tiger Global and Steadview Partners also participated in the round. It is the latest startup to enter the unicorn club after Cars 24.

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The funding will be used for expansion of the business across European and South American markets, as the company aims to almost double its employee count from 550 to 900 by 2022, said Koneru, the chief executive officer (CEO).

About Zenoti

The startup, formerly ManageMySpa, helps close to 1,000 spa and salon brands across 50 countries manage and digitize appointments and point-of-sale operations. It also helps with payment reconciliation and inventory management, through its cloud-based software suite. Further, it provides integrated customer relationship management and built-in marketing solutions. This allows 12,000 offline storefronts to digitize operations globally.

Sudheer Koneru, Co-founder and CEO at Zenoti, said, “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.”

The funding comes a year after Zenoti raised close to $70 million from Tiger Global Management and Steadview Capital. It will allow the company to make acquisitions of similar SaaS businesses operating in the spa and salon segment. Further, it looks to take an inorganic route for new customer acquisition. Zenoti also aims to acquire two or three companies in the space over the next fiscal and enter newer segments of physical therapy, fitness and pet spas. The startup’s India office counts for almost 70% of its workforce, with close to 400 employees.