Zenoti a SaaS based startup which provides cloud-based software for spas and salons has raised Rs 100 crore ($15 million) led by Norwest Venture Partners along with existing backer Accel India. Zenoti had already received funding of Rs 38 crore from Accel last year.
The Seattle and Hyderabad-based company founded by serial entrepreneur Sudheer Koneru, now plans to aggressively expand operations in the United States and European markets.
Zenoti already earns about half its revenues from clients in the US including large chains like Massage Green and Massage Heights. In India it has clients like Kaya Skin, Enrich Salons, O2 Spas and Blush Clinics. It recently also got Naturals on board with all its 600 outlets throughout the country.
In the US market, Zenoti will compete with players like MindBody, a NASDAQ-listed player valued at $750 million, and Spabooker. While companies which offers software as a service — termed SaaS — have gained investor attention in recent years, only a few have been able to grow revenue to levels of $10 million annually.