GlossGenius closes on $16.4M to serve as a ‘business in a box’ for the beauty and wellness industry

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glossgenius, a technique The provider for the spa, studio and salon industry today announced that it has raised $16.4 million in a Series A funding round led by Bessemer Venture Partners.

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Notably, a high-profile group of angels also participated in the financing, including Shopify co-founder and CEO . Are included Tobias Lutke, Toast CEO Chris Comperato, Toast co-founder Aman Narang, Mindbody co-founder Robert Murphy, Yelp executive and former Venmo executive.

With “tens of thousands” of business clients (two-thirds of whom are women or underrepresented), GlossGenius recently surpassed $1 billion in gross trading volume. Now the B2B software startup has transitioned into payments as a fintech hardware provider for the beauty and wellness industry. card reader which integrates with its app.

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Simply put, GlossGenius aims to be a “business in a box” solution for salon, spa and studio owners. The ultimate goal is to remove the administrative burden from small business owners so they can focus more on growing their business.

“What’s so special about what we’re doing is that we’re connecting the dots for business owners throughout their back offices,” said the founder and CEO. Danielle Cohen-Schoet. ,And that means everything is there for them. Everything is accessible.”

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A former Goldman Sachs analyst, Cohen-Schohet launched the New York-based startup in 2016. GlossGenius previously raised $2.8 million in pre-seed and seed funding from angels and Techstars, but then bootstrapped for five years before seeking more outside capital.

“The initial focus on bootstrapping helped us focus on product market fit and revenue generation and helped the business get off to a strong start,” Cohen-Schohett told Nerdshala. “For most of the time, the business was revenue-financed.”

According to Cohen-Schohet, its new card readers initially sold out in 24 hours and went viral on social media among the salon community.

“They plug directly into the GlossGenius ecosystem and enable any business to categorize all transactions, level data and expenses,” she said. “They can also track client visits, history and revenue in a very integrated way.”

image credit: CEO and Founder Danielle Cohen-Schohet / GlossGenius

While some companies are opting to go horizontal, GlossGenius cites its vertical SaaS approach as the key to its success — an approach that Cohen-Schohate draws to toast.

“Toast’s recent and successful IPO only reinforces that Vertical Software is here to stay. Small businesses have specific needs and they need technology to be successful,” she said. Size is not suitable for everyone. I think we are in the midst of a renaissance of SMB technology.”

For now, GlossGenius is focused more on growth than profitability. It plans to use its new capital mostly to expand and create “unique product experiences that help take the burden off of running a business.” The startup is also looking to boost its 100-person team.

The fascinating thing about GlossGenius is that it has managed to cross $1 billion in GMV with a zero-person sales team. According to Cohen-Schöhet, all of its growth has been primarily driven by word of mouth. A portion of the new capital will go towards building the marketing team.

Kent Bennett, partner at Bessemer Venture Partners, said his firm was amazed to see “true customer love” for the GlossGenius product.

startup, he told Nerdshala, “One of the few efficient hyper-growth companies that is succeeding through organic adoption among small businesses.”

“Unlike other solutions that focus on business managers with a top-down approach, GlossGenius first focuses on meeting the needs of the service professionals who are running their businesses, giving them a convenient, mobile- The first platform helps provide the best possible customer service,” Bennett wrote via email. “This superior functionality is what drives bottom-up-driven success for businesses of any size in the beauty and wellness industry.”

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