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NEWS
Zenoti secures US$160m in funding
POSTED 16 Dec 2020 . BY Katie Barnes
Zenoti's software is used by more than 12,000 businesses in 50-plus countries Credit: Shutterstock/gpointstudio

Our goal is to help spas streamline everything they do so they can focus on their craft
– Sudheer Koneru
Cloud-based spa and salon software supplier Zenoti has secured US$160m (€131.6m, £119.2m) in funding from private equity firm Advent International.

It's raised approximately US$250m (€205.7m, £186m) in funding since launching in 2010 and this latest investment has seen Zenoti reach the US$1bn unicorn valuation mark.

The valuation is based on details such as growth rate – Zenoti grew by 80 per cent in 2019, 100 per cent this year and is projected to grow by 120 per cent in 2021 – its low churn rate of clients, which is less than 5 per cent, microtrends in the market and the high-end brands it works with.

Zenoti's software is used by more than 12,000 businesses in 50-plus countries and well-known clients include MGM Resorts and franchises Massage Heights and Hand & Stone Massage and Facial Spa.

The brand is known for its automated and AI-driven algorithms which spas use to optimise their business and enhance profitability and the new funds raised will be used to fuel further AI innovations.

"Our goal is to help spas streamline everything they do so they can focus on their craft – which is making people feel great," Zenoti CEO, Sudheer Koneru, told Spa Business.

"We're just about to launch smart scheduling algorithms which we've been beta testing and smart inventory will follow in Q1."

He reveals that Zenoti is also looking at introducing Uber-like dynamic pricing.

"If you book a car via Uber, customers and drivers don't even question the price, they trust that that's the rate to pay at that time and that's what we're working on [for spas and salons]."

In addition, Zenoti plans to use the money for research and development, creating a 'reputation management' module for example.

Koneru explained that the module will work by 'smart listening' – collating all reviews anyone has ever made about a certain spa over multiple platforms, from Facebook and Instagram to Yelp, and creating trend reports about what consumers feel about a brand and also alerting owners when new reviews are made in real-time.

Koneru believes Advent's investment will help the spa industry at a time of heightened expectations for health and safety during the global pandemic.

"We offer many touchless options from filling out pre-visit forms online so customers can go straight to a treatment room to contactless check-ins and payments," he says, adding that spa consumer and therapist mobile apps help with this too.

"Some spas using our software also offer features like a waitlist where customers are sent a text when a spa is ready for them so they don't wait inside with other people in a reception."

Eric Wei, a managing director of Advent's technology team says: "The wellness industry is ripe for disruption, particularly as COVID-19 has made it more important than ever to eliminate unnecessary face-to-face interactions wherever possible… We're incredibly excited about Zenoti and believe the company has a significant runway for growth."
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Uniting the world of spa & wellness
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News   Products   Magazine   Subscribe
NEWS
Zenoti secures US$160m in funding
POSTED 16 Dec 2020 . BY Katie Barnes
Zenoti's software is used by more than 12,000 businesses in 50-plus countries Credit: Shutterstock/gpointstudio
Our goal is to help spas streamline everything they do so they can focus on their craft
– Sudheer Koneru
Cloud-based spa and salon software supplier Zenoti has secured US$160m (€131.6m, £119.2m) in funding from private equity firm Advent International.

It's raised approximately US$250m (€205.7m, £186m) in funding since launching in 2010 and this latest investment has seen Zenoti reach the US$1bn unicorn valuation mark.

The valuation is based on details such as growth rate – Zenoti grew by 80 per cent in 2019, 100 per cent this year and is projected to grow by 120 per cent in 2021 – its low churn rate of clients, which is less than 5 per cent, microtrends in the market and the high-end brands it works with.

Zenoti's software is used by more than 12,000 businesses in 50-plus countries and well-known clients include MGM Resorts and franchises Massage Heights and Hand & Stone Massage and Facial Spa.

The brand is known for its automated and AI-driven algorithms which spas use to optimise their business and enhance profitability and the new funds raised will be used to fuel further AI innovations.

"Our goal is to help spas streamline everything they do so they can focus on their craft – which is making people feel great," Zenoti CEO, Sudheer Koneru, told Spa Business.

"We're just about to launch smart scheduling algorithms which we've been beta testing and smart inventory will follow in Q1."

He reveals that Zenoti is also looking at introducing Uber-like dynamic pricing.

"If you book a car via Uber, customers and drivers don't even question the price, they trust that that's the rate to pay at that time and that's what we're working on [for spas and salons]."

In addition, Zenoti plans to use the money for research and development, creating a 'reputation management' module for example.

Koneru explained that the module will work by 'smart listening' – collating all reviews anyone has ever made about a certain spa over multiple platforms, from Facebook and Instagram to Yelp, and creating trend reports about what consumers feel about a brand and also alerting owners when new reviews are made in real-time.

Koneru believes Advent's investment will help the spa industry at a time of heightened expectations for health and safety during the global pandemic.

"We offer many touchless options from filling out pre-visit forms online so customers can go straight to a treatment room to contactless check-ins and payments," he says, adding that spa consumer and therapist mobile apps help with this too.

"Some spas using our software also offer features like a waitlist where customers are sent a text when a spa is ready for them so they don't wait inside with other people in a reception."

Eric Wei, a managing director of Advent's technology team says: "The wellness industry is ripe for disruption, particularly as COVID-19 has made it more important than ever to eliminate unnecessary face-to-face interactions wherever possible… We're incredibly excited about Zenoti and believe the company has a significant runway for growth."
RELATED STORIES
FEATURE: Software: Soft touch


How can software help spa operators navigate issues following lockdown?
FEATURE: Software: Customer connections


How can spas use software to keep in touch with clients during lockdown?
Zenoti maps impact of coronavirus on its spa clients


Spa software company, Zenoti, has produced insights into the impact coronavirus is having on its customers.
MORE NEWS
QC New York to unveil 15,000sq ft multimillion-dollar expansion in July
QC New York, a luxury Italian day spa on Governors Island, will expand its offering this July by adding an extra 15,000sq ft of space. This new area will feature sensory saunas, waterfalls, a salt room, an ice room, a lavender room, a 142-seat bistro and a waterbed relaxation room.
Wellness real estate market booming – forecast to reach $913bn by 2028, reports GWI
The Global Wellness Institute (GWI) has released promising new research on the wellness real estate market at its third-annual Wellness Real Estate & Communities Symposium in Manhattan.
Banyan Group appoints Paul Hawco to spearhead wellness strategy
Paul Hawco, a seasoned figure in the international wellness industry, has assumed the role of executive director – integrated wellbeing at independent, hospitality group Banyan Group.
Ritz-Carlton Reynolds, Lake Oconee, unveils new-look lakeside destination spa
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Step into a world of wellness with the Himalayan Source Salt Capsule
Himalayan Source has launched the Himalayan Salt Capsule to help spa, wellness and fitness facilities or residences upgrade their offering with halotherapy. [more...]

Book4Time unveils enhanced day and resort pass functionality
With an increasing number of luxury hotels and resorts offering day and resort passes to drive staycation business, Book4Time, a leader in innovative spa and wellness solutions, is thrilled to announce the launch of Day & Resort Passes on its award-winning platform. [more...]
+ More featured suppliers  
COMPANY PROFILES
Cellcosmet

Roland C. Pfister founded Cellcosmet and developed the skincare line to prolong the therapy's benefi [more...]
+ More profiles  
CATALOGUE GALLERY
+ More catalogues  

DIRECTORY
+ More directory  
DIARY

 

18-22 May 2024

Eco Resort Network

The Ravenala Attitude Hotel, Mauritius
23-24 May 2024

European Health Prevention Day

Large Hall of the Chamber of Commerce (Erbprinzenpalais), Wiesbaden, Germany
+ More diary  
 


ADVERTISE . CONTACT US

Leisure Media
Tel: +44 (0)1462 431385

©Cybertrek 2024

ABOUT LEISURE MEDIA
LEISURE MEDIA MAGAZINES
LEISURE MEDIA HANDBOOKS
LEISURE MEDIA WEBSITES
LEISURE MEDIA PRODUCT SEARCH
PRINT SUBSCRIPTIONS
FREE DIGITAL SUBSCRIPTIONS