Zenoti, which develops software for large spas and salon chains, has acquired US-based SuperSalon, a salon management software solutions provider.
The acquisition is aimed at bolstering its revenue, Zenoti founder Sudheer Koneru told ET, without commenting on the terms of the deal.
It is intended to help Zenoti—which works with large salon and spa chains across the US—strengthen its presence among large standalone salons that have been using SuperSalon in the US.
Koneru told ET that this is the first of several planned acquisitions and that the company has set aside around $120 million for inorganic growth.
“This acquisition is in line with the strategy we put forth upon receiving our Series D funding from Advent and TPG. As we had planned, the additional capital enables us to continue to expand our platform through M&A and SuperSalon is the first of several planned,” he said.
After becoming a unicorn late last year, the Hyderabad- and Seattle-based company raised another $80 million in June led by TPG following which it was valued at $1.5 billion, ET reported previously.
The combined entity will power over 15,000 spas, salons and med-spas, including leading national chains in the market. Zenoti has raised around $350 million till date, including the funding round in June.
“Even with the increase in scale, Zenoti continues to build momentum and has achieved 100% year-over-year growth,” Koneru added.
As part of the deal, SuperSalon’s chief executiveRaj Mahajan will join Zenoti as its senior vice president for corporate development.
As businesses continue to open after Covid-19 induced shutdowns, Zenoti is seeing higher demand from customers for digital solutions.
Zenoti makes software solutions in areas like online appointment bookings, employee management, inventory, management and built-in marketing programmes.
“Like Zenoti, SuperSalon is trusted and proven among large enterprises, and our combined entity will not only expand the reach of our offering but also give us the scale to continue to develop cutting-edge technology that takes our customers to the next level,” Koneru said.
Source: Economic Times