 "Home services provider Housejoy acquires laundry start-up MyWash")
Bengaluru-based home services provider Housejoy has acquired MyWash to strengthen its position in the on-demand laundry space. This is the first acquisition for the Amazon-backed company and shows consolidation in the space given the reduced availability of venture funding.
While the terms of the deal remain undisclosed, the core team of 10 members including three founders of MyWash are expected to join Housejoy. Moreover, with better frequency of usage and a larger user base, Housejoy is better positioned to drive orders while MyWash brings the operational know-how.
“We felt that laundry is a complex category due to the logistical operations. The MyWash team having looked at this problem for the last one year, has at least learnt what works and what doesn’t work,” said Saran Chatterjee, CEO at Housejoy.
Through the acquisition, the company is looking to scale to about 10,000 transactions per day driven solely by on-demand laundry over the next year. Currently MyWash handles close to 1,000 transactions, according to Chatterjee.
Housejoy, which raised Rs 150 crore in a series-B round led by Amazon in December, says it is open to acquiring smaller players in categories that are important to it. While still in a nascent stage, the home services aggregator market which saw a spurt of venture funding last year, has in some ways dropped off the radar which could lead to a lot of takeovers in 2016.
While the terms of the deal remain undisclosed, the core team of 10 members including three founders of MyWash are expected to join Housejoy. Moreover, with better frequency of usage and a larger user base, Housejoy is better positioned to drive orders while MyWash brings the operational know-how.
“We felt that laundry is a complex category due to the logistical operations. The MyWash team having looked at this problem for the last one year, has at least learnt what works and what doesn’t work,” said Saran Chatterjee, CEO at Housejoy.
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Housejoy has run its laundry service for the past six months and has a presence in five cities so far - Bengaluru, Mumbai, Chennai, Hyderabad and Delhi, while MyWash is present only in Bengaluru.
Through the acquisition, the company is looking to scale to about 10,000 transactions per day driven solely by on-demand laundry over the next year. Currently MyWash handles close to 1,000 transactions, according to Chatterjee.
Housejoy, which raised Rs 150 crore in a series-B round led by Amazon in December, says it is open to acquiring smaller players in categories that are important to it. While still in a nascent stage, the home services aggregator market which saw a spurt of venture funding last year, has in some ways dropped off the radar which could lead to a lot of takeovers in 2016.