New York-based investment firm Tiger Global Management is leading a Series C funding round of $50 million (Rs 350 crore) in Zenoti, a software provider to salons and spas.
Existing investors Norwest Venture Partners and Accel also participated in the funding round, said Avendus Capital in a statement.
Avendus Capital was the exclusive financial adviser to Zenoti on the transaction.
The fresh capital will help Zenoti expand in existing and new geographies, hire and innovate, the statement said.
“With the momentum of more than 100% growth in the past year and being on target to achieve 130% growth in 2019, we’re excited to be leading the transition of this industry to the cloud," said Sudheer Koneru, chief executive of Zenoti.
The Seattle- and Hyderabad-based company, operated by Soham Inc., was founded in 2010 by serial entrepreneur Koneru and his brother Dheeraj Koneru.
In 2015, the company raised $6 million in Series A funding from venture capital firm Accel and others. In 2016, the company secured $15 million from Norwest Venture Partners and Accel India.
The new round takes the total amount Zenoti has raised so far to $71 million, the statement said.
Tiger Global
This is the fifth India-related investment by Tiger Global ever since it ended a three-year hiatus late last year.
The firm invested in Roposo--a social platform for sharing photos and videos--in December 2018, backed Bengaluru-based expense management startup Fyle Technologies Pvt. Ltd in February and pumped capital into customer lifecycle management platform CleverTap in April.
Last month, it also invested $90 million in business-to-business agri-marketing platform Ninjacart.
The investment firm has been one of the early and prime movers in India's startup ecosystem. It had invested early in Flipkart in 2009 and racked up $3 billion when US retailer Walmart Inc. bought a majority stake in the Indian e-commerce firm last year.
In a surprise announcement in March, Tiger Global said that Lee Fixel, under whom it had led the Flipkart deal, would resign. Fixel, Tiger Global’s private equity business head, joined a string of top executives leaving their investment firms to strike it out on their own.
