Fresha Raises $100M to Revolutionize Beauty & Wellness Booking

Revitalization in Beauty and Wellness: Fresha Secures $100 Million Funding

Following the easing of COVID-19 related restrictions, the beauty and wellness sector is experiencing a significant resurgence. A startup dedicated to supporting the diverse requirements of small businesses within this industry has recently announced a substantial funding round to facilitate its growth.

Fresha's Comprehensive Platform and Funding

Fresha, a versatile commerce solution designed for independent wellness and beauty businesses – including hair, nail, and skin salons, as well as yoga instructors, among others – operates on a fundamentally free subscription model for businesses managing customer bookings. The company has successfully raised $100 million in funding.

These funds will be allocated towards expanding Fresha’s operational footprint into new countries. Furthermore, the company intends to broaden the range of businesses utilizing its services, with mental health practitioners and fitness professionals as key target areas. Development of additional services, designed to provide customers with enhanced insights and data regarding their operations, is also planned. Strategic acquisitions will be pursued to augment the existing customer base.

Investment Details and Valuation

This Series C funding round is led by General Atlantic, with participation from Huda Kattan, Michael Zeisser of FMZ Ventures, and Jonathan Green of Lugard Road Capital. Existing investors, including Partech, Target Global, and FJ Labs, also contributed to the round.

To date, Fresha has secured $132 million in total funding. While the company has not disclosed its current valuation, it is widely anticipated to be considerably higher than the $105 million valuation established during its Series B funding round (when operating as Shedul) in February 2020.

Fresha’s Service Portfolio

Fresha offers a comprehensive suite of services, including a no-cost platform for appointment scheduling. Businesses also benefit from free account management software. A payments system is available, encompassing both physical point-of-sale and digital interfaces. The platform also features a marketplace facilitating both B2B (business-to-business) product procurement and B2C (business-to-consumer) sales.

Currently, Fresha serves 50,000 businesses and 150,000 stylists and professionals across more than 120 countries. Its primary markets include the U.K., the U.S., Canada, Australia, New Zealand, and Europe. To date, the platform has processed over 250 million appointment bookings.

Adapting to the Challenges of COVID-19

Despite the challenges posed by the pandemic, Fresha experienced significant growth. The company’s “free” model proved particularly attractive, allowing businesses to maintain a booking platform without incurring costs during periods of reduced activity. This enabled them to generate revenue through alternative channels, such as product sales and voucher offerings.

Remarkably, Fresha observed a 30-fold increase in card payment transactions compared to the previous year, with a total booking value exceeding $12 billion processed through its platform.

Competitive Landscape and Fresha’s Differentiation

The market for technology platforms supporting beauty and retail businesses is highly competitive, with major players like Lightspeed POS, Booksy, StyleSeat, Square, and PayPal all vying for market share. However, Fresha distinguishes itself through its core offering: a completely free booking platform.

This strategy is designed to attract users to Fresha’s other paid services, such as payment processing. Co-founders William Zeqiri (CEO) and Nick Miller (product chief) believe this approach is essential for success in a crowded market.

Data-Driven Innovation

“We believe that software is a commodity,” stated Zeqiri. “Many of our competitors are engaged in a race to the bottom on price. Our goal was to consolidate the software supply side, and gather data about how businesses utilize these tools.”

This data has driven the development of new software solutions and the launch of B2B and B2C marketplaces. Fresha anticipates leveraging data insights to create further products, potentially including enhanced analytics for customers to optimize pricing and service development, or tools tailored to new user categories.

Growth of Digital Services

Fresha’s payment services have experienced rapid adoption, particularly in facilitating virtual transactions like voucher sales.

Miller observed that many customers, traditionally focused on physical retail, were compelled to embrace digital services due to the pandemic. He noted that usage of point-of-sale systems and online payments is now roughly equivalent among Fresha’s customer base.

Strategic Investor Alignment

Fresha’s investor base reflects a strategic vision for future growth. Huda Kattan’s investment, through HB Investments, leverages her influence in the beauty industry. Michael Zeisser’s FMZ Ventures, with its focus on the “experience economy” and Zeisser’s marketplace expertise, signals potential expansion into marketplace activities and social media integration.

Industry Recognition and Future Outlook

“Fresha has emerged as a leader powering the beauty and wellness industry,” commented Aaron Goldman, Global co-head of financial services and managing director at General Atlantic. “William, Nick and the Fresha team have built a product that is resonating with the market and creating long-term value through the intersection of its payments, software and marketplace offerings. We are thrilled to be partnering with the company and believe Fresha has significant opportunity to further scale its innovative platform.”

Kattan added, “I’ve witnessed firsthand the positive impact Fresha has for beauty entrepreneurs. The company is a force for good in the growing community of beauty professionals around the globe, who are increasingly adopting a self-employed approach. By making top business software accessible without any subscription fees, Fresha lets professionals focus on what they do best — offering great experiences for their customers.”