The investment will help Zenoti accelerate product innovation, expand into both existing and new geographies and ramp up its workforce, it said in a statement.
The latest round has taken Zenoti’s total funding to $71 million till date.
“With tremendous momentum of more than 100 per cent growth in the past year and on target to achieve 130 per cent growth in 2019, we’re excited to be leading the transition of this industry to the cloud,” Sudheer Koneru, CEO, Zenoti said. “We’re energized that this funding will allow us to keep technology innovation at the forefront for our industry.”
Founded in 2010 by Sudheer Koneru, Dheeraj Koneru, Anand Arvind and Saritha Katikaneni, Zenoti caters to software requirements of salon and spa chains. The company boasts of thousands of customers spanning 44 countries, and offers services including appointment booking, payroll of employees, inventory management and managing financials, among others.
The company’s clientele includes MGM Resorts, Lakme, and Taj Hotels, besides a host of salon chains such as Waxing the City, Massage Heights, Mario Tricoci, Prose Boutiques, Sono Bello and Rudy’s Barbershop in the US.
The US market currently contributes more than half of the company’s revenue, while India’s share is less than 20 per cent, said a report in The Economic Times. Going forward, the company plans to expand its workforce in India by 50 per cent in areas including artificial intelligence, machine learning, data analytics and R&D, the report added. It currently employs about 300 people in India.
The company also intends to increase its presence in the UK market this year.
Meanwhile, Tiger Global has stepped up its investments in India since it raised $3.75 billion for its new fund, Tiger Global Private Investment Partners XI, which is focused on consumer internet, cloud computing, industry software and direct-to-consumer companies in India, China and the US.
Some of its recent investments in the country include expense management software Fyle, facilities management software startup Facilio, connected workforce platform Innovapptive and mobile marketing startup Clevertap.
According to a recent Mint report, Tiger Global is likely to invest in as many as five SaaS (software-as-a-service) companies in India in May including Locus, a logistics management software company.