Dubai-based Middle East Venture Partners (MEVP) has generated spectacular returns on its investment in London-based beauty and wellness appointment booking marketplace Fresha.
The VC firm said Friday it made a partial exit from Fresha during the company’s Series C funding round of $100 million. US-based private equity firm General Atlantic led the new round.
Along with General Atlantic, a bunch of other new investors including Huda Kattan, Michael Zeisser of FMZ Ventures, and Jonathan Green of Lugard Road Capital also participated in the round. A few existing backed like Paris-based Partech, Target Global and FJ Labs have also pitched in.
MEVP didn’t disclose the exact amount it fetched from the partial exit. But it said it generated a cash-on-cash multiple of a staggering 39 times over the five-year holding period. This translates to an 88% internal rate of return (IRR) from the partial exit, the VC firm said.
The VC firm retains “a sizable stake” in Fresha, it said, without elaborating.
MEVP was Fresha’s first institutional investor, investing in its seed round in 2015. The VC firm subsequently led a $6 million Series A round in the company in 2017.
Fresha raised $20 million in a Series B round in 2019 led by Partech with participation from Berlin’s Target Global and Dubai-based BECO Capital.
Fresha allows consumers to discover, book and pay for beauty and wellness appointments with local businesses via its marketplace. Salons, spas and barbershops can leverage Fresha to manage their operations with its software.
The beauty and wellness company has raised $132 million till date and was valued at $105 million when it had closed its Series B round in February last year.
Fresha has on its platform 50,000 business customers and 150,000 stylists. Its clientele mostly comes from the UK, the US, Canada, Australia, New Zealand and Europe.
“We participated in the secondary sale at the request of the lead investor to support the company in its Series C. We believe the team at Fresha will continue to deliver on a massive growth potential to reach ‘unicorn’ status, especially with the support of reputable investors like General Atlantic,” said Walid Hanna, CEO of MEVP.
MEVP is a VC firm that invests in the early and growth stages of technology companies in the Middle East region, with a focus on the Gulf region and Levant countries. It manages four regional funds. The firm has a team of 20 VC professionals across offices in Dubai, Beirut, Cairo, Bahrain, Riyadh and Abu Dhabi.