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Zenoti: TPG to lead $80 million funding in Zenoti at $1.5 billion valuation

Mumbai | Bengaluru: US private equity major TPG is set to lead a funding of $80 million in SaaS startup Zenoti, which makes software for large spas and salon chains, two people close to the matter said. It is likely to be valued anywhere between $1.5 billion post this funding as it continues to see increased adoption of digitisation from the beauty and salon industry in the US.

Based out of Hyderabad and Seattle, Zenoti, became a unicorn in December 2020 at a $1 billion valuation. Besides TPG, some of its existing investors are also going to participate in the funding round and it may see a minor secondary share sale as well.

When contacted, Zenoti confirmed the development to ET. It said this is an extension of its series D round and its valuation has jumped to almost $1.5 billion. Zenoti said the new investment will enable the company to continue to expand its platform through forthcoming M&A, while also providing some liquidity to its employees for their commitment and hard work to the organisation over the last decade.

“Zenoti has created the go-to cloud-based platform for leading beauty and wellness brands

looking to grow their businesses and create better experiences for their customers,” said Arun

Agarwal, MD, TPG. Sudheer Koneru, CEO and Founder at Zenoti. Said the company remains ‘committed to helping beauty, wellness, and fitness businesses reach their full potential and set the standard for the customer experience.”

Zenoti has about 12,000 business customers across 50 countries with the US being its largest market, contributing around 60% of its topline. Another 20% comes from the UK, and the rest from Australia, New Zealand, Middle East, India and Southeast Asia. It is said to be managing around 50 million bookings. It has a total of 550 employees across the globe with around 400 in India, where it is looking to add another 300.

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