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Beauty and Wellness Start-Up Zenoti Raises $80 Million

June 16, 2021 BeautyMatter
June 16, 2021
Atikah Akhtar via Unsplash

Zenoti, the beauty and wellness start-up, has secured an $80 million investment from TPG Capital less than six months after its Series D when it reached unicorn status.

WHO: Zenoti was founded in 2010 by Sudheer Koneru, Anand Arvind, Dheeraj Koneru (Sudheer’s brother), and Saritha Katikaneni with the vision of building a holistic management solution tailored to the needs of companies in health and wellness verticals. Today it powers more than 12,000 businesses in over 50 countries. Zenoti’s touchless and mobile solutions serve all aspects of consumer engagement. The all-in-one, cloud-based software solution is engineered for reliability and scale, harnessing the power of enterprise-level technology for businesses of all sizes. Zenoti helps clients streamline their systems and reduce costs, while simultaneously improving customer retention and spending.

TPG is a leading global alternative asset firm founded in 1992 with more than $91 billion of assets under management and offices in Beijing, Fort Worth, Hong Kong, London, Luxembourg, Melbourne, Mumbai, New York, San Francisco, Seoul, Singapore, and Washington, DC. TPG's investment platforms are across a wide range of asset classes, including private equity, growth equity, impact investing, real estate, secondaries, and public equity.

WHY: The additional capital will enable the company to continue to expand its platform through forthcoming M&A, while also providing some liquidity to its employees for their commitment and hard work to the organization over the last decade.

IN THEIR OWN WORDS: “We are privileged to have the trust, confidence and support of TPG as we continue our growth journey,” said Sudheer Koneru, CEO and founder at Zenoti. “Zenoti remains committed to helping beauty, wellness, and fitness businesses reach their full potential and set the standard for the customer experience.”

“Zenoti has created the go-to cloud-based platform for leading beauty and wellness brands looking to grow their businesses and create better experiences for their customers,” said Arun Agarwal, Managing Director at TPG. “As consumers across the globe continue to prioritize self-care, we believe the company is well-positioned for strong growth.”

DETAILS:

  • Zenoti secured an $80 million investment from TPG Capital, which was not part of a formal funding round and further increased its $1 billion valuation.
  • The additional investment builds on a time of significant momentum for Zenoti, the company having achieved 100 percent year-over-year growth in 2020.
  • To date, Zenoti has raised a total of approximately $330 million.
  • In December 2020, Zenoti closed a $160 million round of Series D funding at an over $1 billion valuation. The round was led by Advent International with participation by Tiger Global and Steadview Partners.
  • In August 2019 the business raised $20 million from Steadview Capital following a $50 million Series C in May 2019.
  • Powering more than 12,000 businesses in over 50 countries, Zenoti is a leading software solution for salon and spa businesses. The company has recently expanded into the fitness industry through partnerships with CorePower Yoga and other fitness leaders.
  • Zenoti’s portfolio of global brands using the platform include European Wax Center, Hand & Stone, Massage Heights, Rush Hair & Beauty, Sono Bello, Hair Cuttery, Profile by Sanford, and Toni&Guy.
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