Fresha, a marketplace platform for beauty and wellness services, has announced the securing of a USD $31 million venture debt facility from J.P. Morgan.
The funding is expected to support Fresha's expansion into new markets, as well as enhance its machine learning capabilities and AI-powered robotics. The company's all-in-one platform aims to create a more streamlined and efficient operation for its user base.
Fresha has witnessed notable growth in Australia. It reports a 70 per cent year-over-year increase in the region, with five million unique sessions across its web and app traffic. The platform currently collaborates with over 12,000 partners in Australia and 16,000 across the Asia Pacific region. This latest investment will see the team grow from 30 to 40 people by the end of the year to support around 40,000 staff members who receive bookings through the platform. Fresha also plans to expand its services into wellness, class-based businesses, and medical practices.
Fresha provides business software without a subscription fee that includes embedded payment processing and a consumer marketplace. The platform intends to help beauty businesses, such as salons, barbershops, spas, and aesthetics clinics, to operate efficiently and independently. The software aims to level the playing field for businesses of various sizes by streamlining operations and connecting them with more customers.
The company has attracted considerable investment to date, having raised over USD $185 million in venture capital funding, including a USD $150 million Series C round in 2021 led by General Atlantic. With its new relationship with J.P. Morgan, Fresha seeks to further its ambitions to innovate in the beauty and wellness sector as it approaches profitability.
Consumers can use Fresha's platform to discover, book, and pay for appointments with local beauty and wellness businesses. Beauty and wellness professionals benefit from an all-in-one platform that includes free business software and financial technology solutions to manage their operations. This approach aims to foster innovation and accessibility, enabling businesses to thrive in a competitive market.
Fresha provides tools to manage appointment bookings, point-of-sale transactions, customer records, marketing automation, loyalty programmes, product inventory, and team management. Additionally, the platform leverages online bookings and automated marketing through mobile apps and integrations with major technology platforms such as Instagram, Facebook, and Google, unlocking revenue potential for partner businesses. By removing barriers to advanced technology, Fresha aims to enable all beauty professionals to enhance their services and expand their reach.
Worldwide, Fresha boasts a network of over 110,000 merchants, with a presence in the United States, United Kingdom, Canada, Australia, New Zealand, and Europe. Its reach extends to 120 countries, with customers booking tens of millions of appointments monthly. Fresha has facilitated transactions worth over USD $35 billion in gross merchandise volume to date. Additionally, the company saw a 67 per cent year-over-year growth in revenues in 2023 and expects similar performance levels in 2024.
Alexandra Wyatt from J.P. Morgan welcomed the partnership, stating, "We're delighted to support Fresha on their continued growth journey. Fresha is steering the rapidly expanding beauty and wellness space with its innovative technology and strong unit economics. Their unique business model is transforming the industry landscape, and it's precisely the type of innovation we want to help drive globally."
J.P. Morgan serves high-growth companies in industries such as technology, fintech, disruptive commerce, life sciences, climate tech, and healthtech. The firm provides industry expertise, local support, global products and services, and a robust network of investors and partners to meet clients' commercial, investment, and private banking needs.
William Zeqiri, Founder and CEO of Fresha, said, "We are thrilled to be working with J.P. Morgan. The beauty and wellness industry is a dynamic world, buzzing with creativity, innovation, and an endless quest for service enhancement. Today, there is so much potential to be unlocked. Beauty service providers need a 360-degree view of each client, including booking behaviour, preferences, payment methods, and lifetime value. Extracting insights from every transaction has become a key competitive advantage, allowing our users to offer highly tailored and personalised services."
Zeqiri highlighted Fresha's next steps: "The next exciting frontier for Fresha is expanding our research and development in machine learning and integrating AI into daily business operations. By embracing cutting-edge technology, we are not just enhancing our services; we are creating opportunities and redefining what's possible. Our vision is a world where innovation and creativity flourish together, driving progress and enabling everyone to reach their full potential. In the not-so-distant future, we envision AI-powered robots working alongside humans in the beauty and wellness space. Robots can handle repetitive tasks, such as managing bookings, mixing colours, welcoming customers, or managing inventory, freeing up valuable time for stylists to focus on personalising their services and honing their craft."
