Fresha in London achieves unicorn status following an $80M funding round led by KKR.

      The beauty and wellness booking platform based in London has entered the UK unicorn club with a valuation exceeding $1 billion, amidst ongoing debates in the broader SaaS sector regarding its future. Fresha, known for its booking and payment services for salons and spas, announced on Thursday that it has secured $80 million from KKR-managed funds, valuing the company at over $1 billion. This round, categorized as primary growth capital, elevates Fresha to unicorn status and brings its total funding since 2015 to $285 million.

      The investment comes from KKR’s Next Generation Technology Growth fund, part of the firm’s growth-equity division, which invests in companies that have already achieved product-market fit and are seeking capital for scaling rather than just funding their runway.

      Fresha's announcement included figures showing significant demand for its services. The platform is utilized by over 130,000 beauty and wellness businesses across the UK, Australasia, the Gulf, North America, and regions in South-East Asia, managing over 35 million appointments monthly, or approximately 420 million annually, with a gross merchandise value of $15 billion. The annual revenue run-rate exceeds $140 million, with growth rates surpassing 60% per year, and the business is generating profit. The last valuation reported by Fresha, during a Series C extension in late 2021, was $640 million.

      Founded in 2015 by William Zeqiri and Nick Miller, Fresha has spent the last five years steadily replacing older booking systems in its key markets and expanding into payments, capital, and more recently, AI-driven scheduling and marketing solutions. In a statement, Zeqiri referred to achieving unicorn status as “a proud milestone” and mentioned that the new funding would support further global expansion and investment in AI.

      Miller, the company’s chief product officer, characterized this funding round as a testament to customer validation, noting that users have already integrated the platform as their primary operational framework. KKR's diligence process lasted over a year and involved surveying more than 1,000 beauty and wellness businesses in the US, UK, Ireland, the EU, and Australia, as well as conducting interviews with customers, former employees, and competitors.

      KKR reported that their research ranked Fresha highest in software quality, ease of use, support, setup, and marketplace strength, achieving an average score of 8.1 out of 10 compared to an average of 6.7 for competitors. Patrick Devine, a partner with KKR’s Tech Growth team, noted that Fresha has developed “a differentiated platform that combines software, financial services, and marketplace capabilities with embedded AI.” Marta Szczerba, a director on the same team, expressed admiration for the founders, highlighting her long-standing confidence in their consistent performance.

      The deal arrives at a challenging time for the SaaS category that Fresha belongs to, with Salesforce experiencing a roughly 30% decline year-to-date, and the broader software market grappling with the debate that per-seat pricing may not be suitable for the AI era. A vertical platform that generates revenue from payments and marketplace fees in addition to subscriptions is seen as less impacted by this argument, which likely influenced KKR's findings.

      Fresha indicated that the new capital will be allocated toward expanding operations in the US, continental Europe, Africa, and South-East Asia, as well as enhancing AI functionalities for booking automation, marketing, accounting, and workforce management. The company did not provide details on a timeline for an IPO or future fundraising efforts.