Tiger Global leads $50 million round in SaaS firm Zenoti
5 years ago Bhavitaavya DharanikotaNew York-based investment firm Tiger Global Management has led a $50 million funding round in salon and spa sector-focused Software-as-a-Service (SaaS) firm Zenoti. Existing investors Accel Partners and Norwest Venture Partners also participated in the round and Avendus was the financial advisor to the deal. The fresh capital will help Zenoti expand in existing and new geographies, hire and innovate, the statement said. With the momentum of more than 100% growth in the past year and being on target to achieve 130% growth in 2019, Zenoti is excited to lead the transition of this industry to the cloud. In 2015, the company raised $6 million in Series A funding from venture capital firm Accel and others. In 2016, the company secured $15 million from Norwest Venture Partners and Accel India. The new round takes the total amount Zenoti has raised so far to $71 million.
This is the fifth India-related investment by Tiger Global ever since it ended a three-year hiatus late last year. The firm invested in Roposo, a social platform for sharing photos and videos–in December 2018, backed Bengaluru-based expense management startup Fyle Technologies Pvt. Ltd. in February and pumped capital into customer lifecycle management platform CleverTap in April. Last month, it also invested $90 million in business-to-business agri-marketing platform Ninjacart. The investment firm has been one of the early and prime movers in India’s startup ecosystem. It had invested early in Flipkart in 2009 and racked up $3 billion when US retailer Walmart Inc. bought a majority stake in the Indian e-commerce firm last year. In a surprise announcement in March, Tiger Global said that Lee Fixel, under whom it had led the Flipkart deal. Fixel, Tiger Global’s private equity business head, joined a string of top executives leaving their investment firms to strike it out on their own.
The Seattle- and Hyderabad-based company, operated by Soham Inc., was founded in 2010 by serial entrepreneur Sudheer Koneru and his brother Dheeraj Koneru. Before Sudheer co-founded Zenoti, he led a large part of the team that developed the Windows operating system and founded an enterprise software company (now SumTotal), which he helped grow to $100 million. Today, Zenoti is used by over 5,000 businesses in 32 countries and is most proud to work with great brands that represent leaders in the beauty and wellness space. And to serve businesses of all sizes from chains with hundreds of locations to a family owned single location brand. Their enterprise-class software reflects innovations that are transforming expectations in our industry. Zenoti’s ‘all-in-one’ approach has enabled their clients to achieve real business results, things like increasing customer spend, customer retention, and dramatically improving employee performance.
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