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5,000 Clients, 30 Countries: SaaS Startup Zenoti Aims To Give A Technology Turnaround To The Wellness Industry

5,000 Clients, 30 Countries: SaaS Startup Zenoti Aims To Give A Technology Turnaround To The Wellness Industry

And most instances, the excellent. At least it became real in Sudheer Koneru’s case. Sudheer began his career in Seattle at Microsoft. After an eight-yr-stint dabbling in enterprise software program, he based an incorporated HR answers company SumTotal Systems. In nine years, he grew it to a $a hundred Mn business.

It changed into in 2004 that he, along with his brother Dheeraj Koneru, ventured out from the consolation zone in their respective software improvement careers into something absolutely unrelated i.E. To set up and run Latitudes Health Club and Tangerine Spas – a sequence of health centres, spas, and salons, in Hyderabad.

With six massive stores to their credit, the duo experienced first-hand, the complexity, pain, and challenges concerned in handling operations for a wellbeing enterprise while not having the right software. The enterprise lacked reliable and smooth-to-use software program that supported the entire environment of operational duties in spas and salons, specially the desires of a multi-vicinity chain.

Begins Sudheer, “This experience gave me an intimate expertise of the challenges in this enterprise.”

And that’s whilst the 2 went returned to leverage their revel in in company software program to build an answer that supported the wishes of a multi-region splendor/wellness chain.

Thus, Zenoti (known as ManageMySpa till September 2015) become born in Hyderabad in 2010 and currently based in Seattle (Washington). It is an all-in-one, cloud-primarily based software program for salons, spas, and medi-spas with wealthy competencies throughout appointment scheduling, on line booking, billing, constructed in advertising and marketing, stock management, CRM, and loyalty features.

Becoming The Backbone For Operating Businesses

Zenoti presently powers hundreds of salons in over 30 nations. It enables salons to seamlessly control every aspect of enterprise – from on-line appointment bookings, to billing via a PoS, CRM, worker scheduling and payroll, inventory management, building and deploying advertising and marketing promotional and sales campaigns and more. It additionally gives an internet keep in which clients can provide on-line booking as well as sell retail merchandise and gift cards.

Zenoti-powered salons are able to increase client retention, customer spend, and cut down on expenses. It enables salons to deliver a international magnificence consumer experience by automating operational and commercial enterprise strategies.


Says Sudheer, “Simply put, we are the spine on which our customers absolutely rely upon to function their groups.”

5K Customers, 30 Countries, Growing 2 hundred% Y-O-Y

Zenoti now claims to have five,000 paying clients on its books spread throughout 30 countries. Of those, 50% are inside the US and 30% in Southeast Asia. While Sudheer did now not expose the real revenues, they may be envisioned to be somewhere between $7 Mn-$10 Mn. However,he did reveal that Zenoti has been developing at greater than 2 hundred% yr-on-year, in phrases of ARR.

In the remaining couple of years, specially, it has managed to feature a whole bunch of marquee clients. Brands like Massage Heights, Waxing the City, Sothys, Kaya, and Lakme have followed Zenoti in the remaining 18 months. Also, the startup has elevated into multiple worldwide regions with places of work in Seattle, Dubai, Melbourne, Kuala Lumpur, Jakarta, and Manila besides america and India. It now boasts of a 200+ sturdy team.

The startup monetises from the month-to-month subscription that customers sign up for. However, it has other avenues as well such as promoting consumables like SMS and emails that combine with Zenoti. Reveals Sudheer, “In North America, we also have our personal credit card processing platform that customers can use for processing purchaser payments. We recognition on the whole on organizations which have more than one retailers and are excessive-quit businesses within the enterprise.”

Besides, for some of its larger enterprise clients, Zenoti also sells add-on solutions like purchaser mobile app and an internet shop to allow stop purchasers to ebook their appointments on line while not having to name the front desk.

Over the years, it has raised about $21 Mn in funding. These encompass a $6 Mn Series A spherical from Accel Partners in July 2015, observed by $15 Mn in Series B investment from Accel Partners and Norwest Venture Partners in September last year. The Series B funding will in particular be used to similarly amplify operations in the US and Europe, together with an try and growth the patron base, expand new merchandise, and body of workers.

Building A Category Leader, Targeting $one hundred Mn In Three Years

This competitive enlargement has simplest one quit aim – turning Zenoti into a category leader.

Says Sudheer, “In India we have come to be the de facto leader in the health software marketplace. There isn't any different player inside the Indian marketplace that has a patron list of marquee brands like we do.”

However, in North America, Zenoti faces opposition from agencies like Mindbody Online, Booker and Millenium. He feels that none of those companies have features which can absolutely assist all the business factors of an employer class health chain. In that unique category, he believes Zenoti has an facet and is unique in its standard offering.

And that’s precisely what's powering his goals to turn Zenoti into a $a hundred Mn agency with the aid of 2020. Over the next few months, greater capabilities are predicted to be brought to the product to make it geared up for all varieties of gyms, health, and yoga centres. In the pipeline are also many different extensions to the enterprise, as Zenoti ambitions to take a larger slice of the global wellbeing enterprise-related software program opportunity towards the stop of this 12 months, – projected to be greater than $10 Bn as according to Sudheer.

Product-wise, Zenoti is in the manner of liberating a comprehensive Point of Sale solution the usage of a tablet so that a spa/salon not wishes a proper reception and can engage with their customers through pills at any factor within the outlet. Much like an Apple Store which does no longer greet you with a the front table and a pc, spas/salons can be designed without this sort of the front table with a pc on it. These “reception-much less spas” can be enabled thru diverse cell answers.

India, SaaS, And Going Global

While 60% of Zenoti’s client base is outdoor India, Sudheer believes that India additionally gives a huge SaaS play due to the many spa and salon chains. What will further assist the Indian SaaS marketplace is the authorities’s push to deliver Internet to the leading edge all across India. He adds, “The key may also be to offer cell-based SaaS answers as cell penetration is a whole lot extra than computer penetration, mainly within the rural areas. That is part of our approach later this 12 months.”


However, while questioned if Zenoti ever faced any trouble promoting from India, he exhibits that became by no means the case as the employer had a sales crew both in the US and Southeast Asia which helped in promoting to corporations abroad. In truth, the product also did no longer face tons resistance in India and noticed greater adoption via Indian spas and salon industry.

There are a few matters which include loss of proper infrastructure especially in Tier II and Tier III cities and the exchange in mind-set – from paying a one-time rate for laptop-based solutions to a monthly fee for SaaS-based software program solutions – that holds returned greater adoption in India.

For startups trying to go global, Sudheer advocates focussing on one area of interest of the market. He additionally believes that one can not attain worldwide customers, mainly, huge B2B establishments remotely; therefore, sooner or later sales presence in overseas markets is a ought to as a part of one’s strategy of going global. But, in the long run, he believes in the one golden mantra – building a founder-centric corporation, a possible product, and getting the first few customers than annoying approximately metrics.

With those in vicinity, SaaS startups can fearlessly chart any worldwide territory they want to – be it spas or SMBs.

Author Biography.

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