US-based private equity company TPG is set to provide funding of $80 Million along with other investors to SaaS-based start-up Zenoti, which makes software for large spas and salon chains. The start-up is expected to be valued at $1.5 Bn post this round. Zenoti will continue its funding as it continues to see increased digitization from the self-care, salon, and beauty industry overall.
Zenoti is based out of Hyderabad in India and Seattle in the US. It has only recently become a unicorn in December 2020 at a valuation of $1 Bn. Some existing investors also took part in this round, in addition to TPG, and it may see a secondary share sale as well.
The new investment will facilitate the continued expansion of its platform through forthcoming mergers and acquisitions (m&a). It will also provide liquidity to Zenoti’s employees for their commitment to the organization across the last ten years.
Zenoti has 12,000 customers spread across 50 countries with the US being its largest market, contributing 60% of its business. 20% comes from the UK, and the rest from India, Middle East, Australia, New Zealand, and other locations in South-East India. It has a total of 550 employees globally, of which 400 are in India.