Mumbai: New York-based investment firm Tiger Global Management has led a $50 million funding round in salon and spa sector-focused Software-as-a-Service (SaaS) firm Zenoti, the company said in a statement. Existing investors Accel Partners and Norwest Venture Partners also participated in the round.
Avendus was the financial advisor to the deal
An enterprise cloud platform, Zenoti provides software for salons and spa chains across 44 countries. Using artificial intelligence, predictive analytics and mobile solutions, it helps these outlets better attract, engage and retain customers. It also helps eliminate long front desk lines and facilitates the omni-channel booking and contactless payments. Zenoti’s customers in India include Lakme, Enrich and Kaya Skin Clinic.
In August 2016, the firm had last raised $15 million from Norwest and Accel In 2015, it had raised $6 million from Accel.
Tiger Global, one of India’s most prolific startup investors, with early bets on Flipkart and Ola, has recently turned its focus on business-to-business startups. Emerging from an almost two-year hiatus, it has invested in several B2B startups in the last six months, including agri-marketing and delivery firm Ninjacart, where it invested $89 million last week.
Tiger Global’s interest in India continues even after its celebrated private equity chief Lee Fixel decided to leave the firm in March. Tiger’s latest fund, Tiger Global Private Investment Partners XI, of $3.75 billion will focus on consumer internet, cloud computing, industry software and direct-to-consumer companies in India, China and the US.
Mint reported on Monday that Tiger is looking to invest in as many as five SaaS companies in India, including Locus, a logistics management software company, in May.
“Tiger Global’s investment in Zenoti is the validation of all the hard work the team has put in so far and the zeal to make Zenoti the backbone of the beauty and wellness industry. We are pleased to be in the company of other category-defining portfolio companies in Tiger Global portfolio," said Sudheer Koneru, CEO, Zenoti.
“With tremendous momentum of more than 100% growth in the past year and on target to achieve 130% growth in 2019, we’re excited to be leading the transition of this industry to the cloud," he added.
The Zenoti deal marks Tiger’s fifth investment in B2B startups in the last six months, in which it has committed $200 million so far.