Marc Lore leaves Walmart a little over four years after selling Jet.com for $3B

Marc Lore, the executive vice president, president and CEO of U.S. e-commerce for Walmart, is stepping down a little over four years after selling his e-commerce company Jet.com to the country’s largest retailer for $3 billion.

Lore’s tenure at the company was a mixed bag. Walmart instituted several new technology initiatives under Lore’s tenure, but the Jet.com service was shuttered last May and other initiatives from Lore, like an option to have customers order items via text, was also a money-loser for the Bentonville, AK-based company.

“After Mr. Lore retires on January 31, 2021, the U.S. business, including all the aspects of US retail eCommerce, will continue to report to John Furner, Executive Vice President, President and Chief Executive Officer, Walmart U.S., beginning on February 1, 2021,” Walmart said in a filing.

Walmart has continued to push ahead with a number of tech-related initiatives, including the launch of a new business that will focus on developing financial services.

That initiative is being undertaken through a strategic partnership with the fintech investment firm, Ribbit Capital and adds to a startup tech portfolio that also includes the incubator Store N⁰8, which launched in 2018.

“Reflecting on the past few years with so much pride – Walmart changed my life and the work we did together will keep changing the lives of customers for years to come. It has been an honor to be a part of the Walmart family and I look forward to providing advice and ideas in the future,” Lore said in a statement posted to Linkedin. “Looking forward, I’ll be taking some time off and plan to continue working with several startups. Excited to keep you all up to date on what’s next.”

 

 

 

Home services platform Porch acquires four companies

Only a few weeks after its SPAC IPO, Porch today announced that it has made four acquisitions, worth a total of $122 million. The most important here is probably the acquisition of Homeowners of America for $100 million, which gets Porch deeper into the home insurance space. In addition, Porch is also acquiring mover marketing and data platform V12 for $22 million, as well as home inspection service Palm-Tech and iRoofing, a SaaS application for roofing contractors. Porch did not disclose the acquisition prices for the latter two companies.

You may still think of Porch as a marketplace for home improvement and repair services — and that’s what it started out as when it launched about seven years ago. Yet while it still offers those services, a couple of years after its 2013 launch, the company pivoted to building what it now calls a “vertical software platform for the home.” Through a number of acquisitions, the Porch Group now includes Porch.com, as well as services like HireAHelper, Inspection Support Network for home inspectors, Kandela for providing services around moving and an insurance broker in the form of the Elite Insurance Group. In some form or another, Porch’s tools are now used — either directly or indirectly — by two-thirds of U.S. homebuyers every month.

Porch founder and CEO Matt Ehrlichman. Image Credits: Porch

As Porch founder and CEO Matt Ehrlichman told me, he had originally planned to take his company public through a traditional IPO. He noted that going the increasingly popular SPAC route, though, allowed him to push his timeline up by a year, which in turn now enables the company to make the acquisitions it announced today.

“In total, we had a $323 million fundraise that allows us now to not only be a public company with public currency, but to be very well capitalized. And picking up that year allows us to be able to go and pursue acquisitions that we think make really good fits for Porch,” Ehrlichman told me. While Porch’s guidance for its 2021 revenue was previously $120 million, it’s now updating that guidance to $170 million based on these acquisitions. That would mean Porch would grow its revenue by about 134% year-over-year between 2020 and 2021.

As the company had previously laid out in its public documents, the plan for 2021 was always to get deeper into insurance. Indeed, as Ehrlichman noted, Porch these days tends to think of itself as a vertical software company that layers insurtech on top of its services in order to be able to create a recurring revenue stream. And because Porch offers such a wide range of services already, its customer acquisition costs are essentially zero for these services.

Image Credits: Homeowners of America

Porch was already a licensed insurance brokerage. With Homeowners of America, it is acquiring a company that is both an insurance carrier as well as a managing general agent..

“We’re able to capture all of the economic value from the consumer as we help them get insurance set up with their new home and we can really control that experience to delight them. As we wrap all the technology we’ve invested in around that experience we can make it super simple and instant to be able to get the right insurance at the right price for your new home. And because we have all of this data about the home that nobody else has — from the inspection we know if the roof is old, we know if the hot water system is gonna break soon and all the appliances — we know all of this data and so it just gives us a really big advantage in insurance.”

Data, indeed, is what a lot of these acquisitions are about. Because Porch knows so much about so many customers, it is able to provide the companies it acquires with access to relevant data, which in turn helps them offer additional services and make smarter decisions.

Homeowners of America is currently operating in six states (Texas, Arizona, North Carolina, South Carolina, Virginia and Georgia) and licensed in 31. It has a network of more than 800 agencies so far and Porch expects to expand the company’s network and geographic reach in the coming months. “Because we have [customer acquisition cost]-free demand all across the country, one of the opportunities for us is simply just to expand that across the nation,” Ehrlichman explained.

As for V12, Porch’s focus is on that company’s mover marketing and data platform. The acquisition should help it reach its medium-term goal of building a $200 million revenue stream in this area. V12 offers services across multiple verticals, though, including in the automotive space, and will continue to do so. The platform’s overall focus is to help brands identify the right time to reach out to a given consumer — maybe before they decide to buy a new car or move. With Porch’s existing data layered on top of V12’s existing capabilities, the company expects that it will be able to expand these features and it will also allow Porch to not offer mover marketing but what Ehrlichman called “pro-mover” services, as well.

“V12 anchors what we call our marketing software division. A key focus of that is mover marketing. That’s where it’s going to have, long term, tremendous differentiation. But there are a number of other things that they’re working on that are going to have really nice growth vectors, and they’ll continue to push those,” said Ehrlichman.

As for the two smaller acquisitions of iRoofing and Palm-Tech, these are more akin to some of the previous acquisitions the company made in the contractor and inspection verticals. Like with those previous acquisitions, the plan is to help them grow faster, in part through integrating them into the overall Porch group’s family of products.

“Our business is and continues to be highly recurring or reoccurring in nature,” said Porch CFO Marty Heimbigner. “Nearly all of our revenues, including that of these new acquisitions, is consistent and predictable. This repeat revenue is also high margin with less than 20% cost of revenue and is expected to grow more than 30% per year on our platform. So, we believe these deals are highly accretive for our shareholders.”

App stores saw record 218 billion downloads in 2020, consumer spend of $143 billion

Mobile adoption continued to grow in 2020, in part due to the market forces of the COVID-19 pandemic. According to App Annie’s annual “State of Mobile” industry report, mobile app downloads grew by 7% year-over-year to a record 218 billion in 2020. Meanwhile, consumer spending grew by 20% to also hit a new milestone of $143 billion, led by markets that included China, the United States, Japan, South Korea and the United Kingdom.

Consumers also spent 3.5 trillion minutes using apps on Android devices alone, the report found.

In another shift, app usage in the U.S. surged ahead of the time spent watching live TV. Currently, the average American watches 3.7 hours of live TV per day, but now spends four hours on their mobile device.

The increase in time spent is a trend that’s not unique to the U.S., but can be seen across several other countries, including both developing mobile markets like Indonesia, Brazil and India, as well as places like China, Japan, South Korea, the U.K., Germany, France and others.

The trend isn’t isolated to any one demographic, either, but is seen across age groups. In the U.S., for example, Gen Z, millennials and Gen X/Baby Boomers spent 16%, 18% and 30% more time in their most-used apps year-over-year, respectively. However, what those favorite apps looked like was very different.

For Gen Z in the U.S., top apps on Android phones included Snapchat, Twitch, TikTok, Roblox and Spotify.

Millennials favored Discord, LinkedIn, PayPal, Pandora and Amazon Music.

And Gen X/Baby Boomers used Ring, Nextdoor, The Weather Channel, Kindle and ColorNote Notepad Notes.

The pandemic didn’t necessarily change how consumers were using apps in 2020, but rather accelerated mobile adoption by two to three years’ time, the report found.

Investors were also eager to fuel mobile businesses as a result, pouring $73 billion in capital into mobile companies — a figure that’s up 27% year-over-year. According to Crunchbase data, 26% of total global funding dollars in 2020 went to businesses that included a mobile solution.

From 2016 to 2020, global funding to mobile technology companies more than doubled compared with the previous five years, and was led by financial services, transportation, commerce and shopping.

Mobile gaming adoption also continued to grow in 2020. Casual games dominated the market in terms of downloads (78%), but Core games accounted for 66% of games’ consumer spend and 55% of the time spent.

With many stuck inside due to COVID-19 lockdowns and quarantines, mobile games that offered social interaction boomed. Among Us, for example, became a breakout game in several markets in 2020, including the U.S.

Other app categories saw sizable increases over the past year, as well.

Time spent in Finance apps in 2020 was up 45% worldwide, outside of China, and participation in the stock market grew 55% on mobile, thanks to apps like Robinhood in the U.S. and others worldwide, that democratized investing and trading.

TikTok had a big year, too.

The app saw incredible 325% year-over-year growth, despite a ban in India, and ranked in the top five apps by time spent. The average monthly time spent per user also grew faster than nearly every other app analyzed, including 65% in the U.S. and 80% in the U.K., surpassing Facebook. TikTok is now on track to hit 1.2 billion active users in 2021, App Annie forecasts.

Other video services boomed in 2020, thanks to a combination of new market entrants and a lot of time spent at home. Consumers spent 40% more hours streaming on mobile devices, with time spent in streaming apps peaking in the second quarter in the west as the pandemic forced people inside.

YouTube benefitted from this trend, as it became the No. 1 streaming app by time spent among all markets analyzed except China. The time spent in YouTube is up to 6x that of the next closet app at 38 hours per month.

Of course, another big story for 2020 was the rise of e-commerce amid the pandemic. This made the past year the biggest ever for mobile shopping, with an over 30% increase in time spent in Shopping apps, as measured on Android phones outside of China.

Mobile commerce, however, looked less traditional in 2020.

Social shopping was a big trend, with global downloads of Pinterest and Instagram growing 50% and 20% year-over-year, respectively.

Livestreaming shopping grew, too, led by China. Downloads of live shopping TaoBao Live in China, Grip in South Korea and NTWRK in the U.S. grew 100%, 245% and 85%, respectively. NTWRK doubled in size last year, and now others are entering the space as well — including TikTok, to some extent.

The pandemic also prompted increased usage of mobile ordering apps. In the U.S., Argentina, the U.K., Indonesia and Russia, the app grew by 60%, 65%, 70%, 80% and 105%, respectively, in Q4.

Business apps, like Zoom and Google Meet among others, grew 275% in Q4, for example, as remote work and sometimes school, continued.

The analysis additionally included lists of the top apps by downloads, spending and monthly active users (MAUs).

Although TikTok had been topping year-end charts, Facebook continued to beat it in terms of MAUs. Facebook-owned apps controlled the top charts by MAUs, with Facebook at No. 1 followed by WhatsApp, Messenger and Instagram.

TikTok, however, had more downloads than Facebook and ranked No. 2 by consumer spending, behind Tinder.

The full report is available only as an online interactive experience this year, not a download. The report largely uses data from both the iOS App Store and Google Play, except where otherwise noted.

The Amazon-Berkshire Hathaway-JPMorgan healthcare joint venture is officially ending

A somewhat nebulous, but high-profile and potentially heavily-moneyed joint venture is coming to an end: Haven, the JV created by Amazon, Berkshire Hathaway and JPMorgan Chase, is being “disbanded” according to CNBC, three years after its original formation. One of the main reasons is that each partner in the venture was apparently just pursuing their own very different strategic approach to their respective healthcare challenges, meaning their really wasn’t much joint in the joint venture to begin with.

In a statement provided to CNBC, a Haven spokesperson highlighted some of the good results that came out of the partnership over the years, however, including improving access to primary care, and making insurance benefits packages easier to grasp for employees. Meanwhile, Amazon has made lots of progress on its own with its Amazon Care program, which is its internal healthcare program for employees at its Washington state facilities.

Amazon Care includes provision of both virtual and in-person primary care doctor visits, and prescription delivery. The company is also reported to be considering expansion of this service to other businesses, which signal its intent to turn it into a real business with aims very much in line with what the Haven JV had originally taken as its guiding light.

To be honest, the original announcement about the JV’s founding was light on details and seemed like one of those things that comes together when very rich people talk about their shared problems over a casual afternoon hang at the club with caviar and mineral water distilled from pristine arctic ice or whatever they enjoy during their repasts, so it’s not all that surprising it didn’t materialize into anything more substantial.

Brazilian lending company Creditas raises $255 million as Latin America’s fintech explosion continues

Creditas, the Brazilian lending business, has raised $255 million in new financing as financial services startups across Latin America continue to attract massive amounts of cash.

The company’s credit portfolio has crossed 1 billion reals ($196.66 million) and the new round will value the company at $1.75 billion thanks to $570 million raised in outside financing over five rounds.

Creditas is the latest company to benefit from a boom in financial services startup investing across the region. As the year dawned, venture investments into fintech startups in Latin America had grown from $50 million in 2014 to top $2.1 billion in 2020 across 139 deals, according to a report from CB Insights.

Investors in the round include new investors like LGT Lightstone, Tarsadia Capital, Wellington Management, e.ventures and an affiliate of Advent International, Sunley House Capital. Previous investors including SoftBank Vision Fund 1, SoftBank Latin America DFund, VEF, Kaszek and Amadeus Capital Partners also returned to put more money into the company.

“Creditas is still in the early innings of penetrating the huge untapped secured lending market in Brazil and Mexico” says Paulo Passoni, managing partner of SoftBank Latam fund, in a statement.

The company’s growth is a testament both to the need for new lending products across Latin America and the perspicacity of investors like Kaszek Ventures, whose portfolio has included several massive wins from bets on startups tackling financial services in Latin America.

“The journey since our investment in the Series A has been absolutely extraordinary. The team has executed on its vision, and Creditas has evolved into an asset-light ecosystem that resolves key financial needs of its customers throughout their lifetimes,” says Nicolas Szekasy, managing partner of Kaszek Ventures, in a statement.

Another big winner is Redpoint’s e.ventures fund, which has focused on investments in Latin America for the last several years.

“By empowering Brazilians to take control of their lending needs at reasonable rates, Creditas creates a beloved consumer product that will drive significant value for customers and investors. Having been involved since the seed stage through Redpoint e.ventures, we’re thrilled to support the company with our Global Growth Fund as well, as they change the Brazilian fintech landscape,” said Mathias Schilling, co-founder and managing partner of e.ventures.

Creditas has plans to use the cash to expand its home and auto lending as well as a payday lending service based on customers’ salaries and a retail option to sell through buy now, pay later loans based on a customer’s salary.

The company is also looking to expand to other markets, with an eye toward establishing a foothold in the Mexican market.

Founded in 2012, when the founders worked out of a five-square-meter office on Berrini Avenue in São Paulo, the company now boasts a robust business with hundreds of employees and a business resting on a secured lending marketplace and independent home and auto lending operations.

The company also released quarterly results for the first time, showing losses narrowing from 74.9 million Brazilian reals to 40.5 million reals in the year ago quarter.

Helping big banks out-Affirm Affirm and out-Chime Chime, gives Amount a $681 million valuation

Amount, a new service that helps traditional banks compete in a digital world, has raised $81 million from none other than Goldman Sachs as it looks to help legacy fintech players compete with their more nimble digital counterparts.

The company, which spun out from the startup lending company Avant Credit in January of this year, has already inked deals with Banco Popular, HSBC, Regions Bank and TD Bank to power their digital banking services and offer products like point-of-sale lending to compete with challenger banks like Chime and lenders like Affirm or Klarna.

“Most banks are looking for resources and infrastructure to accelerate their digital strategy and meet the demands of today’s consumer,” said Jade Mandel, a Vice President in Goldman Sachs’ growth equity platform, GS Growth, who will be joining the Board of Directors at Amount, in a statement. “Amount enables banks to navigate digital transformation through its modular and mobile-first platform for financial products. We’re excited to partner with the team as they take on this compelling market opportunity.”

Complimenting those customer facing services is a deep expertise in fraud prevention on the back-end to help banks provide more loans with less risk than competitors, according to chief executive Adam Hughes.

It’s the combination of these three services that led Goldman to take point on a new $81 million investment in the company, with participation from previous investors August Capital, Invus Opportunities and Hanaco Ventures — giving Avant a post-money valuation of $681 million and bringing the company’s total capital raised in 2020 to a whopping $140 million.

Think of Amount as a white-labeled digital banking service provider for luddite banks that hadn’t upgraded their services to keep pace with demands of a new generation of customers or the COVID-19 era of digital-first services for everything.

Banks pay a pretty penny for access to Amount’s services. On top of a percentage for any loans that the bank process through Amount’s services, there’s an up-front implementation fee that typically averages at $1 million.

The hefty price tag is a sign of how concerned banks are about their digital challengers. Hughes said that they’ve seen a big uptick in adoption since the launch of their buy-now-pay-later product designed to compete with the fast growing startups like Affirm and Klarna .

Indeed, by offering banks these services, Amount gives Klarna and Affirm something to worry about. That’s because banks conceivably have a lower cost of capital than the startups and can offer better rates to borrowers. They also have the balance sheet capacity to approve more loans than either of the two upstart lenders.

 “Amount has the wind at its back and the industry is taking notice,” said Nigel Morris, the co-founder of CapitalOne and an investor in Amount through the firm QED Investors. “The latest round brings Amount’s total capital raised in 2020 to nearly $140M, which will provide for additional investments in platform research and development while accelerating the company’s go-to-market strategy. QED is thrilled to be a part of Amount’s story and we look forward to the company’s future success as it plays a vital role in the digitization of financial services.”

FT Partners served as advisor to Amount on this transaction.

HMBradley raises $18.25 million planting a flag as LA’s entrant into the challenger bank business

With $90 million in deposits and $18.25 million in new financing, HMBradley is making moves as the Los Angeles-based entrant into the challenger bank competition.

LA is home to a growing community of financial services startups and HMBradley is quickly taking its place among the leaders with a novel twist on the banking business.

Unlike most banking startups that woo customers with easy credit and savvy online user interfaces, HMBradley is pitching a better savings account.

The company offers up to 3% interest on its savings accounts, much higher than most banks these days, and it’s that pitch that has won over consumers and investors alike, according to the company’s co-founder and chief executive, Zach Bruhnke.

With climbing numbers on the back of limited marketing, Bruhnke said raising the company’s latest round of financing was a breeze. 

“They knew after the first call that they wanted to do it,” Brunke said of the negotiations with the venture capital firm Acrew, a venture firm whose previous exposure to fintech companies included backing the challenger bank phenomenon which is Chime . “It was a very different kind of fundraise for us. Our seed round was a terrible, treacherous 16-month fundraise,” Brunke said.

For Acrew’s part, the company actually had to call Chime’s founder to ensure that the company was okay with the venture firm backing another entrant into the banking business. Once the approval was granted, Brunke said the deal was smooth sailing.

Acrew, Chime, and HMBradley’s founders see enough daylight between the two business models that investing in one wouldn’t be a conflict of interest with the other. And there’s plenty of space for new entrants in the banking business, Bruhnke said. “It’s a very, very large industry as a whole,” he said.

As the company grows its deposits, Bruhnke said there will be several ways it can leverage its capital. That includes commercial lending on the back end of HMBradley’s deposits and other financial services offerings to grow its base.

For now, it’s been wooing consumers with one click credit applications and the high interest rates it offers to its various tiers of savers.

“When customers hit that 3% tier they get really excited,” Bruhnke said. “If you’re saving money and you’re not saving to HMBradley then you’re losing money.”

The money that HMBradley raised will be used to continue rolling out its new credit product and hiring staff. It already poached the former director of engineering at Capital One, Ben Coffman, and fintech thought leader Saira Rahman, the company said. 

In October, the company said, deposits doubled month-over-month and transaction volume has grown to over $110 million since it launched in April. 

Since launching the company’s cash back credit card in July, HMBradley has been able to pitch customers on 3% cash back for its highest tier of savers — giving them the option to earn 3.5% on their deposits.

The deposit and lending capabilities the company offers are possible because of its partnership with the California-based Hatch Bank, the company said.

Mobile banking app Current raises $131M Series C, tops 2 million members

U.S. challenger bank Current, which has doubled its member base in less than six months, announced this morning it raised $131 million in Series C funding, led by Tiger Global Management. The additional financing brings Current to over $180 million in total funding to date, and gives the company a valuation of $750 million.

The round also brought in new investors, Sapphire Ventures and Avenir. Existing investors returned for the Series C, as well, including Foundation Capital, Wellington Management Company and QED.

Current had originally began as a teen debit card controlled by parents, but expanded to offer personal checking accounts last year, using the same underlying banking technology. The service today competes with a range of mobile banking apps, offering features like free overdrafts, no minimum balance requirements, faster direct deposits, instant spending notifications, banking insights, check deposits using your phone’s camera, and other now-standard baseline features for challenger banks.

In August 2020, Current debuted a points rewards program in an effort to better differentiate its service from the competition, which as of this month now includes Google Pay.

When Current raised its Series B last fall, it had over 500,000 accounts on its service. Today, it touts over 2 million members. Revenue has also grown, increasing by 500% year-over-year, the company noted today.

“We have seen a demonstrated need for access to affordable banking with a best-in-class mobile solution that Current is uniquely suited to provide,” said Current founder and CEO Stuart Sopp, in a statement about the fundraise. “We are committed to building products specifically to improve the financial outcomes of the millions of hard-working Americans who live paycheck to paycheck, and whose needs are not being properly served by traditional banks. With this new round of funding we will continue to expand on our mission, growth and innovation to find more ways to get members their money faster, help them spend it smarter and help close the financial inequality gap,” he added.

The additional funds will be used to further develop and expand Current’s mobile banking offerings, the company says.

Looking to emulate Venmo, JoomPay preps a Euro launch for easy bill splitting and cash payments

JoomPay, a startup with a similar product to PayPayl-owned Venmo in the US, is set to launch in Europe shortly after being granted a Luxembourg Electronic Money Institution (EMI) license. The app allows people to send and receive money with anyone, instantly and for free. “Venmo me” has become a common phrase in the US, where people use it to split bills in restaurants or similar. Venmo is in common use in the US, but it’s not available in Europe, although dozens of other innovative mobile peer to peer transfer options exist, such as Revolut, N26, Monese and Monzo. The waitlist for the app’s beta is open now.

Europe leads the world’s instant payments industry, with $18 trillion in worldwide volume predicted by 2025 up from $3 trillion in 2020 – a growth of over 500%. Western Europe – and COVID-19 – is now driving that innovation and will account for 38% of instant payment transaction value by 2025. While Europe lacks simple peer-to-peer payments solutions such as Venmo or Square Cash App in the US, challenger banks have stepped up to provide similar kinds of services. JoomPay’s opportunity lies in being able to be a middle-man between these various banking systems.

Shopping app Joom, which has been downloaded 150M times in Europe, has spun-off JoomPay to solve this problem. The app allows users to send and receive money from any person, regardless of whether they use JoomPay or not – and you only need to know their email or the phone number. JoomPay connects to any existing debit/credit card or a bank account. It also provides its users with a European IBAN and an optional free JoomPay card with cashback and bonuses.

Yuri Alekseev, CEO and co-founder of JoomPay, said: “Since COVID-19 started, we’ve seen a significant decline in cash usage. People can’t meet as easily as before but still need to send money, and we offer a viable alternative.”

JoomPay may have an uphill struggle. Its main competitors in Europe are the huge TransferWise, Paysend, and of course PayPal itself.

LA-based Boulevard raises $27 million for its spa management software

Boulevard, a spa management and payment platform, has raised $27 million in a new round of funding despite a business slowdown caused by the COVID0-19 pandemic.

Founded four years ago by Matt Danna and Sean Stavropoulos, Boulevard was inspired by Stavropoulos’ inability to book a haircut and Danna’s hunch that the inability of salons and spas to cater to customers like the busy programmer could be indicative of a bigger problem.

The two spent months pounding the pavement in Los Angeles pretending to be college students doing research on the industry. They spoke with salon owners in Beverly Hills, Hollywood, and other trendy neighborhoods trying to get a sense of where software and services were falling short.

Through those months of interviews the two developed the booking management and payment platform that would become Boulevard. The inspiration was one part Shopify and one part ServiceTitan, Danna said.

The idea was that the Boulevard could build a pretty large business catering to the needs of a niche industry that hadn’t traditionally been exposed to a purpose-built toolkit for its vertical.

Investors including Index Ventures, Toba Capital, VMG Partners, Bonfire Ventures, Ludlow Ventures and BoxGroup agreed.

That could be because of the size of the industry. There’s over $250 billion spent per year across roughly 3 million businesses in the salon and spa category, according to data provided by the company. By comparison, fitness attracts roughly $34 billion in annual spending from 150,000 businesses.

“With limited access to the professionals that help us look and feel our best, I think the world has realized something that our team has always recognized: salons and spas are more than a luxury, they are essential to our well-being,” said Danna, in a statement. “We are humbled that so many businesses are placing their trust in us during such a turbulent time. This new capital will help accelerate our mission and deliver value to salons and spas that they never imagined was possible from technology.”

According to data provided by the company, Boulevard is definitely giving businesses a boost. On average, businesses increase bookings by 16%, retail revenue jumps by 18%, and gratuity paid out to stylists jumps by 24% for businesses that use Boulevard, the company said. It also reduces no-shows and cancellations, and halves time spent on the phone.  

“Boulevard is revitalizing the salon and spa industry, as evidenced by the company’s sustained 300-400% revenue growth over the last three years,” said Damir Becirovic of Index Ventures, whose firm led the company’s Series A round and has doubled down with the new capital infusion. 

Customers using the company’s software include: Chris McMillan the Salon, Heyday, MèCHE Salon, Paintbox, Sassoon Salon, SEV Laser, Spoke & Weal, and TONI&GUY.

Boulevard now has 90 employees and will look to increase that number as it continues to expand across the country.

Investors have taken a run at the spa market in the past, with company’s like MindBody valued at over $1 billion for its software services. Indeed, that company was taken private two years ago in a $1.9 billion transaction by Vista Equity Partners.

As Boulevard expands, the company may look to get deeper into financial services for the salons and spas that it’s already working with. Given the company’s window into these businesses’ financing, it’s not impossible to image a new line of business providing small business loans to these companies.

It’s something that the founders would likely not rule out. And it’s a way to provide more tools to entrepreneurs that often fall outside of the traditional sweet spot for banks and other lenders, Danna said.