The company, founded in 2012, provided cloud-based booking software to the global salon and spa sector.
The funding round was led by experienced technology investor Movac and Timely chief executive and co-founder Ryan Baker was ``stoked'' about the investment.
``We've made a great start with Timely and learnt a lot, especially in the past year having funded the business from revenue.
``The size of the opportunity in this space has always excited us and this funding allows us to unlock a bunch of growth initiatives. There's a heap of value we want to add to the salon and spa industry worldwide,'' Mr Baker said.
Timely has more than 8000 business customers across 85 countries and staff based in New Zealand, Australia and the United Kingdom.
Earlier this year, Timely was named emerging company of the year in the NZ Hi-Tech Awards and, on Thursday night, it was named 15th fastest-growing company in the national Deloitte Fast 50 having 379% revenue growth.
Mr Baker was ``overwhelmed'' by the Fast 50 result, saying it ``exceeded expectations well and truly'' and he was very proud of the Timely team.
Most of its 47 staff worked from home, giving them autonomy to wrap their work around their family and personal lives.
Movac partner David Beard said Timely had gained significant traction in several key international markets, and achieved strong growth rates in each of those. Its market validation and execution was also compelling.
The funding would be used to fund product development and rapidly expand its market presence.
New roles would be advertised as the company headed into the new phase of growth and Mr Beard would join the Timely board of directors.
Although the capital was important, so was Movac's experience in helping to expand the tech companies that it invested in, Mr Baker said.
It could be difficult for businesses such as Timely to raise money, in addition to it being time-consuming and distracting. Fortunately, Movac was interested very quickly and ``pretty sold'' on investing.
Timely was focused on the beauty and wellbeing industry which continued to grow globally and there was no reason why its 8000 customers could not increase to 80,000 he said.
Movac managing partner Phil McCaw said the company had been investing in New Zealand tech companies for nearly 20 years.
Over that time, the quality of investment opportunities had ``improved dramatically'' and it was delighted to have Timely as its fourth investment in its latest fund.
