Zenoti, the leading enterprise cloud platform for the beauty and wellness industry, announced that it has closed a $160 million Series D funding round at over a $1 billion valuation. The round was led by Advent International (“Advent”), one of the largest and most experienced global private equity investors, through Advent Tech and Sunley House Capital, an affiliate of Advent. Tiger Global and Steadview Partners also participated in the round. To date, Zenoti has raised a total of approximately $250 million.
Powering more than 12,000 businesses in over 50 countries, 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, allowing for easy appointment scheduling, self-check-ins, automatic payments and more.
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This investment 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. While the beauty and wellness industry has been steadily migrating to Zenoti’s leading platform, the current crisis is a catalyst further accelerating adoption.
“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,” said Eric Wei, a Managing Director on Advent’s technology team in Palo Alto. “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.”
Funds 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 will also pursue inorganic growth opportunities.
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“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,” said Sudheer Koneru, CEO at Zenoti. “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.”
The Zenoti co-founders’ firsthand experience with industry challenges, combined with their deep fluency in enterprise software, has resulted in a powerful, cloud-based solution engineered for reliability and scale, harnessing the power of enterprise-level technology for businesses of all sizes. 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, most recently, Toni&Guy.
This investment marks Advent’s seventh growth equity investment this year. 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.
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