GramercyOne Lands $14.5 Million in Funding

NEW YORK (TheStreet) -- GramercyOne, which provides online booking and business management software for companies, announced on Tuesday it has raised $14.5 million in its first round of venture funding.

The New York-based start-up sells software to local businesses, like spas and beauty salons, as well as large companies including Hilton and W Hotels, that allows consumers to schedule and pay for appointments online.

While a substantial portion of GramercyOne's clients are spas and health facilities -- the company last year spun out of spa management software maker SpaBooker -- it's starting to expand into other verticals like bookings for doctor's offices and recreational activities.

The company is trying to become the equivalent of restaurant booking platform OpenTable(OPEN) for service companies, Chief Operating Officer Daniel Lizio-Katzen told TheStreet.

"Just like how OpenTable lets you book a table for two for dinner in Midtown, we let you search for a hot stone massage in Midtown," he said.

As opposed to most other booking systems which use traditional software and require an up-front fee, GramercyOne has a software-as-a-service (SaaS) model in which clients pay on a monthly basis.

Pricing starts at $25 per month for the most basic product and goes up to $1,000 for larger customers.

The company, which has just over 60 employees, has seen significant growth in the last year.

It expects to process $420 million in transactions this year, up from $190 million in 2010. In 2012, it's forecast to hit $1 billion.

Venture firm Revolution Ventures led the funding round, along with GroTech Ventures, TDF, and Jubilee Investments.

--Written by Olivia Oran in New York.

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