Over the course of the pandemic, people have been working hard to stay healthy and dodge new Covid variants. Now as the world adapts to a “new normal,” many people are refocusing on self-care. Though this is good news for the spa and salon industry as it recovers from pandemic-induced revenue loss, many of these businesses are now too short-staffed to keep up with rising consumer demand for services. Atlanta-based Spa Space has positioned itself to provide a remedy to this concern, and it’s equipped with $3 million in seed funding to lend a hand.
The company operates a platform for spa and salon businesses. Its three-sided marketplace solution connects professionals to spa facilities looking to provide clients with services including hydrafacials, nail design, skincare, massages and more. In addition to on-demand staffing, the membership-based solution also enables clients to book services directly through the Spa Space platform based on their specific needs and preferences.
“The demand for wellness is growing and is estimated to grow at over 12 percent CAGR through [2028]. And yet, the spa industry is experiencing a tremendous labor crisis,” Ilana Alberico, founder and CEO of Spa Space, told Built In via email. “Over 92 percent of the industry professionals are female and this pandemic has shown that now, more than ever, females need flexibility and more control over their work and life balance. Spa Space has been an attractive option for women in the spa industry to be able to come back to work on their schedule.”
Based on years of experience as both a massage therapist and as a spa owner and operator, Alberico noticed guests would call to make reservations based on static service menus, providers were often unable to accommodate personalized guest services and facilities had underutilized rooms and high labor costs. So she worked to develop a tech platform that would solve these pain points. Spa Space was engineered to match guests to facilities and licensed professionals based on their ratings, certifications and specialties, Alberico said.
Today, the platform has grown to encompass hundreds of facilities and thousands of professionals, according to the company. Since its launch in March, Spa Space has put investments toward enhancing product features like its scheduling platform and user interface. With its seed funding, it’s building out its solution even more.
The combination of debt and equity financing was led by Christopher Craig, former CEO of Unanet, and will help Spa Space enhance its solution. The company is putting its fresh cash toward increasing brand awareness, driving cloud revenue, furthering product development, optimizing customer success and implementing contracts it currently has in its pipeline. Alongside the funding round, Spa Space announced the addition of Craig to its board of directors.
“I am thrilled to join the Spa Space team and looking forward to [working] with the executive team to augment Spa Space’s position as the premier marketplace platform for the spa and salon industries,” Craig said in a statement. “This is an exciting moment to collaborate on Spa Space’s next stage of growth.”
Part of Spa Space’s continued growth consists of expanding its team. The company is currently hiring for positions on its success and services teams.
