The background of GlossGenius.
A technology company called GlossGenius has announced today that it has raised $16.4 million in a Series A funding round led by Bessemer Venture Partners. The company serves the spa, studio, and salon industries.
Notably, a prominent group of angel investors, including Shopify co-founder and CEO Tobias Lütke, Toast CEO Chris Comparato, Toast co-founder Aman Narang, Mindbody co-founder Robert Murphy, Yelp executives, and former Venmo executives, also took part in the funding.
GlossGenius has crossed $1 billion in gross sales volume with “tens of thousands” of company clients, of which two-thirds are women or underrepresented. With the creation of a card reader that interfaces with its app, the B2B software business has now expanded into payments as a fintech hardware provider for the beauty and wellness sector.
The aim of GlossGenius.
GlossGenius wants to provide salon, spa, and studio operators with a “Business in a box” option. The ultimate goal is to relieve small business owners of their administrative duties, so they may concentrate more on expanding their enterprises.
According to creator and CEO Danielle Cohen-Shohet, “What’s so amazing about what we’re doing is that we’re connecting the dots for business owners across their entire back office on GlossGenius.” Everything can be accessed.
The New York-based firm was established in 2016 by Cohen-Shohet, a former Goldman Sachs analyst. Before looking for more outside money, GlossGenius had already raised $2.8 million in pre-seed and seed finance from angel investors and Techstars.
According to Cohen-Shohet, “The early concentration on bootstrapping helped us be maniacally focused on product market fit and income generation and helped the firm have a great start.” “The company was largely funded by income during that period.”
According to Cohen-Shohet, the company’s innovative card readers first sold out in 24 hours and have since gained popularity among salon-goers on social media.
According to the speaker, they easily track all transactions, level data, and categorize expenses for any organization since they integrate into the GlossGenius ecosystem. In a very integrated approach, they can also keep track of client visits, history, and revenue.
It’s the approach.
While other businesses choose to go horizontal, Cohen-Shohet compares GlossGenius’ vertical SaaS approach to Toast as crucial to its success.
“Vertical software is here to stay, as seen by Toast’s recent and successful IPO. According to her, small firms have unique requirements and require technology designed specifically for them. “One size does not fit everyone. I believe that SMB technology is currently experiencing a resurgence.
GlossGenius is currently more concerned about expansion than profits. It intends to devote most of its new funding to growing and developing “unique product experiences that assist remove the burden of running a business.” The startup wants to grow its 100-person staff.
Success for GlossGenius.
GlossGenius is interesting since it has surpassed $1 billion in GMV despite having a zero-person sales team. Cohen-Shohet claims that word-of-mouth has been the main factor in its growth. A portion of the additional funds will be used to hire marketing staff.
Bessemer Venture Partners partner Kent Bennett expressed his company’s surprise at the “genuine customer passion” for the GlossGenius product. He says the startup is “one of the few effective hyper-growth organizations growing through organic acceptance among small businesses.”
GlossGenius explained in an email that it “focuses first on serving the needs of service professionals running their businesses, helping them deliver the best possible client service in a convenient, mobile-first platform. This is in contrast to other solutions that typically focus on business managers with a top-down approach.