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.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.