Enterprise cloud platform Zenoti snags $20m from US hedge fund Steadview

Seattle and Hyderabad-based enterprise cloud platform Zenoti on Thursday announced that it has raised $20 million in funding from American hedge fund Steadview Capital.

The funding comes less than four months after Zenoti closed a $50-million Series C funding round led by New York-based investment firm Tiger Global Management. Venture capital firm Norwest Venture Partners and Silicon Valley-based Accel Partners had also participated in that round.

The additional funding will be used to expand the company’s presence in the UK and bolster its global marketing efforts, it said in a statement.

Zenoti CEO Sudheer Koneru said, “With more than $91 million raised to date, Zenoti is poised to accelerate adoption of our proven platform on a global scale, and continue to drive exceptional growth through a variety of strategies including innovation, expansion and acquisition.”

Additionally, the company announced that it has hired Guy Weismantel, a SaaS platform and technology industry veteran, as its senior vice-president of marketing.

Weismantel is an alumnus of the University of Notre Dame and the Kellogg School of Management at Northwestern University and has previously worked with companies such as Microsoft and Expedia, Pushpay and Marchex.

Founded in 2010 by Koneru, Dheeraj Koneru, Anand Arvind and Saritha Katikaneni, Zenoti caters to software requirements of salon and spa chains. The company boasts thousands of customers spanning more than 50 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 an earlier Economic Times report. 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.

“Zenoti is realizing our vision of service entrepreneurs, addressing the most common pain points for business owners in the fast growing beauty and wellness industry with a cloud-based platform that is miles ahead of the competition and driving rapid growth,” said Ravi Mehta, Founder and Managing Director of Steadview Capital.

According to a July Mint report, Steadview Capital plans to invest $500 million in growth-stage companies in India over the next two years. The hedge fund, which has previously invested in unicorns such as Flipkart and Ola, is looking to tap consumer internet startups in vertical e-commerce, content and fintech.