PHOREST, WHICH provides online booking and management software for beauty salons in the UK and Ireland, has secured €1.3 million in funding from a syndicate of investors.

The investors are the AIB Seed Capital Fund, managed by Enterprise Equity; Enterprise Ireland; and Bloom Equity, an angel fund backed by seasoned technology entrepreneurs.

Phorest has developed a web-based system that enables hair and beauty salons to take bookings online. It also enables them to manage the appointments, roster staff, control stock and carry out marketing campaigns.

Phorest has also developed Zanadoo.me, a consumer-facing web portal that enables people to find salons in their locality.

“We have a similar business model to what Hostelworld does for accomodation,” said Ronan Perceval, the founder of Phorest, referring to the budget accomodation booking service which was sold for €202.5 million in 2009.

While Hostelworld charges accomodation providers a commission for each bed booked, Mr Perceval said the salon business is more about retaining customers. Reflecting this, Phorest charges just 2.5 per cent commission for a booking, while salons pay €100- €200 a month to use the software.

Phorest will use the investment to increase its market share in Britain and expand into new markets. Mr Perceval said about 850 salons are using its system, with 25 customers signing up every month.

Since securing the investment, Mr Perceval said employment at the company had grown to 30 and, based on current projections, the company will have 50 staff in 18 months’ time.

Mr Perceval said €2.1 billion is spent annually in the UK and Ireland in the full gamut of medical and cosmetic salons and 50-70 per cent of bookings will go online in the next decade. In the last 12 months the Phorest system has processed more than €250 million of bookings.