Vagaro has achieved a $1 billion valuation after it received a new investment from FTV Capital. Terms of the transaction were not disclosed.
Vagaro will focus on continued development of tools for businesses to book professional beauty appointments, manage inventory, collect rent, run payroll and more, in order to be a one-stop-shop for a business’ IT needs.
The company recently added credit card processing features in Canada, Australia and the United Kingdom. It has also focused its efforts on growing market share in the United States. There are plans to serve additional international markets in 2022.
Fred Helou, founder and CEO of Vagaro, said: "For over a decade, in response to the shift away from paper books to online booking, Vagaro has been serving small businesses and independent service professionals with our technology solutions to help them achieve their business operations goals in an efficient manner. This was especially true in 2020, as our platform played a major role in the health and safety of our customers during the COVID-19 pandemic where we were able to provide a function that managed health and safety documentation, as well as several other features that allowed them to do business safely.
Helou continued: "FTV continues to be a value-added partner, bringing significant expertise, commercial introductions and operational support to the table. As such, they were the only financial sponsor we considered for this round. We are very proud to reach the unicorn status. FTV’s support will help us continue our mission to be an all-in-one solution for small businesses in the beauty, fitness and wellness industries. We’re excited for every business in these industries to have a chance to experience our best-in-class product and customer service."
Robert Anderson, partner at FTV Capital, said: "We are thrilled with Vagaro’s success over the last three years, as the company has continued to capture market share by putting customers first and delivering innovative, affordable products that help business owners foster sustainable growth. Fred and his team have done an outstanding job of executing on their vision, and with enormous potential to serve the $10.5 billion health and wellness market still ahead, we are excited to continue working together as we begin this important next phase of growth."