Software maker Zenoti has raised Rs 100 crore ($15 million) in a round led by Norwest Venture Partners along with existing backer Accel India in the largest such deal this year for a startup offering software as a service.

The Seattle and Hyderabad-based company, which provides cloud-based software for spas and salons founded by serial entrepreneur Sudheer Koneru, now plans to aggressively expand operations in the United States and European markets.

“The average revenue we are making from each outlet in the US has doubled as compared to our competitors“, said Koneru as he aims to make his startup the largest software provider for the global wellness industry, a market that he estimates is worth $15 billion.

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.

The funding will be used to expand the client base, build new products and increase workforce from the current level of 140. Earlier called Managemyspa, Zenoti has seen its revenues grow by 200% year-on-year.

It had received funding of Rs 38 crore from Accel last year. While point of sale management services is what is primarily offered by players in the space, Zenoti also includes marketing automation and data analytics tools for its clients.

“Very few Indian companies have been able to successfully sell in the US market“, said Mohan Kumar, a partner at Norwest, which has also backed enterprise software companies like Manthan, Capillary and Attune Technologies in India.

Source: The Economic Times