The cloud-based salon and spa management software company currently serves more than 5,000 wellness outlets world-wide, providing a one-stop platform for client scheduling, gift card distribution/redemption, employee time tracking, and payroll.
“Our solution actually connects all the outlets together into one unit so that data is always communicated back and forth across the brand – things that happen in one location are known in the other locations – and things just work across the program,” said Dheeraj Koneru, co-founder of Zenoti.
The capital from this second round of funding will allow Zenoti to expand their market share, drive production innovation, and add approximately 100 new employees to their world-wide talent pool.
Koneru hopes the funds will allow Zenoti to dominate the wellness sector by becoming the go-to software for corporate salons and small business alike while also branching into fitness and yoga clubs.
“We just want to make sure we become the de facto leader, not just a leader,” he said. “When an enterprise thinks of a software they should think of us.”
Palo Alto-based Norwest is a global venture capital and growth equity investment firm that manages more than $6 billion in capital and funding more than 575 companies since its inception. Norwest came on board due to Zenoti’s fiscal responsibility, as well as their global reach, particularly in Asian markets according to Koneru.
“They found us to be very interesting because without using too much in funding (from an initial $6 million investment funded by Accel Partners in 2015) we actually got pretty far,” Koneru said. “It was (also) an interesting mixture; we are strong in U.S., strong in Asia, strong in Australia, and so on.”
In addition to the influx of cash Zenoti has received, Koneru said he is looking forward to a continued professional relationship with Norwest.
“Going forward they definitely have a lot of connections in this industry as well which will help us leverage those connections to make sure we get into many more of these large scale accounts across the U.S. and globally as well.”