Boulevard Raises $27M to Revolutionize Spa Management Software

Boulevard, a platform designed to manage operations and process payments for spas, has secured $27 million in fresh funding, even amidst the economic challenges presented by the COVID-19 pandemic.

The company was established four years ago by Matt Danna and Sean Stavropoulos, stemming from Stavropoulos’ personal difficulty in scheduling a haircut and Danna’s belief that this experience reflected a broader issue within the salon and spa industry.

The pair dedicated several months to in-person research in Los Angeles, posing as students to gather insights from the industry. They engaged with salon owners in areas like Beverly Hills and Hollywood, aiming to pinpoint gaps in existing software and service offerings.

This extensive research led to the development of Boulevard’s booking, management, and payment platform. Danna explained that the concept drew inspiration from both Shopify and ServiceTitan.

The core idea was to create a substantial business by addressing the specific requirements of a specialized industry that had historically lacked dedicated, purpose-built tools.

This vision resonated with investors, including Index Ventures, Toba Capital, VMG Partners, Bonfire Ventures, Ludlow Ventures, and BoxGroup.

The potential for growth is significant, as the salon and spa sector represents a market exceeding $250 billion in annual spending across approximately 3 million businesses, according to the company’s data. In contrast, the fitness industry sees around $34 billion in yearly spending from 150,000 businesses.

“The recent limitations in accessing the professionals who contribute to our well-being have highlighted something our team has long understood: Salons and spas are not merely luxuries, but vital to our overall health,” stated Danna. “We are grateful for the confidence businesses are showing in us during this difficult period. This new funding will enable us to accelerate our mission and deliver unprecedented value to salons and spas through technology.”

Company data indicates that Boulevard is positively impacting its client businesses. On average, businesses experience a 16% increase in appointments, an 18% rise in retail revenue, and a 24% boost in stylist gratuities after implementing Boulevard. The platform also helps reduce missed appointments and cancellations, and cuts phone-related administrative time in half. 

“Boulevard is driving a revitalization of the salon and spa industry, as demonstrated by its consistent 300-400% revenue growth over the past three years,” noted Damir Becirovic of Index Ventures, whose firm spearheaded the company’s Series A funding and has further invested in this new round. 

Businesses currently utilizing Boulevard’s software include: Chris McMillan the Salon, Heyday, MèCHE Salon, Paintbox, Sassoon Salon, SEV Laser, Spoke & Weal and TONI&GUY.

Boulevard currently employs 90 individuals and plans to expand its team as it broadens its reach across the country.

The spa market has previously attracted investor interest, with companies like MindBody achieving valuations exceeding $1 billion for their software services. In fact, Vista Equity Partners acquired that company two years ago in a $1.9 billion deal.

As Boulevard grows, the company may explore offering more comprehensive financial services to the salons and spas it serves. Leveraging its access to these businesses’ financial data, it could potentially introduce a new service line providing small business loans.

The founders have indicated they would likely consider such an expansion. This would provide additional resources to entrepreneurs who often do not fit the criteria for traditional bank or lender offerings, according to Danna.