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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."
Sign up here to get the Spa Business and Spa Business insider weekly ezines and every issue of Spa Business and Spa Business insider magazines free on digital.
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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."
Sign up here to get the Spa Business and Spa Business insider weekly ezines and every issue of Spa Business and Spa Business insider magazines free on digital.
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.
Zenoti raises US$50m in Series C funding


Enterprise cloud platform Zenoti has closed a US$50m Series C funding round led by Tiger Global Management, with participation from Norwest Venture Partners and Accel.
MORE NEWS
Sha debuts new programme to support long-COVID recovery
Sha Wellness Clinic's latest programme targets those suffering with long-term symptoms of COVID-19 – a syndrome clinically referred to as long-COVID.
Iceland's new Sky Lagoon has been inspired by indigenous bathing culture
Attractions and hospitality brand Pursuit has launched Sky Lagoon, a relaxing and restorative geothermal retreat just outside of Reykjavik, situated against the striking backdrop of the North Atlantic Ocean.
Ken Campling says Bannatyne is repositioning as a wellness provider – locations with spas are 'much more profitable'
Health club operator Bannatyne is repositioning itself as a wellness provider, as it looks to bounce back from the effects of the pandemic lockdowns.
Healing the healers: New training champions importance of therapist self-care, health and wellbeing
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Sign up to HydraFacial Live Spring 2021 on-demand content for expert industry insight and advice
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Cryotherapy specialists, L&R Kältetechnik, launch new artofcryo.com division
L&R Kältetechnik has launched a new division, named artofcryo.com, after 30 years’ experience with -110 °C electrical solutions. [more...]
COMPANY PROFILES
ResortSuite

Serving luxury leisure & wellness properties globally, ResortSuite provides a unique integration tha [more...]
+ More profiles  
CATALOGUE GALLERY
+ More catalogues  

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Sommerhuber GmbH - Ceramic heated LOUNGER ONE PLUS - ultimate relaxation
Lounger One Plus is characterized by an organic aesthetic, delicate contours and an ideal lying comfort. Comfortable ergonomically shaped Heat Storing Ceramics nestle the skin and provide for perfect relaxation – touchless enjoyment meeting the highest hygiene standards. Find out more...
+ More videos  

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ISPA Stronger Together Summit

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11-12 May 2021

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The Pine Cliffs Resort, Albufeira, Portugal
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Tel: +44 (0)1462 431385

©Cybertrek 2021

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