Barbershop technology startup theCut sharpens its platform with new $4.5M round – ProWellTech

TheCut, a technology platform designed to handle back-end surgeries for hairdressers, raised $ 4.5 million in new funds.

Nextgen Venture Partners led the round and was supported by Elevate Ventures, Singh Capital and Leadout Capital. The latest funding gives theCut a total of $ 5.35 million in funding since the company was founded in 2016, Founder Obi Omile Jr. told ProWellTech.

Omile and Kush Patel developed the mobile app that provides potential customers with information and reviews about hairdressers while managing appointments, mobile payments and prices for hairdressers in the backend.

“Kush and I both had terrible haircut experiences and decided to create an app to find good hairdressers,” said Omile. “We realized that there are great hairdressers but no way to discover them. You can do a google search but it won’t list the individual hairdressers. With theCut you can discover an individual barber and find out whether it suits you and won’t screw your hair up. “

The app allows hairdressers, possibly for the first time, to compile a list of clients and take notes and photos of hairstyles, as well as track visits and expenses. By providing payments, hairdressers can also leverage digital trends to offer additional services and extras to generate more revenue. On the customer side, there is a search function with a hairdresser profile, photos of their work, ratings and reviews, a list of service offers and prices.

Omile said there are 400,000 to 600,000 hairdressers in the U.S. and this is one of the fastest growing markets. As a result, the new funds will be used to hire additional talent, conduct marketing, and grow the business across the country.

“We’re at a point where we’re going to be on our way and see business catapult, so we’re in hiring mode,” he added.

In fact, the company has generated more than $ 500 million in sales for hairdressers since its inception, adding more than 100,000 users every month. In addition, the app records an average of 1.5 million appointment bookings per month.

Next, Omile would like to build some new features like a digital shop and the ability to process more physical payments by introducing a card reader for personal payments. TheCut will also focus on enabling hairdressers to have a more personal relationship with their clients.

“We develop software to empower people to be the best version of themselves, in this case hairdressers,” he added. “The relationship with the customer is an opportunity for the hairdresser to make specific product recommendations and create a care experience.”

As part of the investment, Leadout founder and managing partner Ali Rosenthal joined the company’s board of directors. She said Omile and Patel are the kind of founders venture capitalists are looking for – experts in their markets and data-driven technologists.

“They had done so much with so little when we met them,” added Rosenthal. “They create a passionate community and a range of modern, technology-driven features that are tailored to the needs of their customers.”