The UK based on-demand laundry and digital dry cleaning startup LaundryHeap recently secured Series A funding of $3.5 million (£2.5 million approx.) from London-based Sova VC. As claimed in the company press release, LaundryHeap has been one of the fastest-growing companies in the UK during 2014 by cleaning 10 million items with a growth of 1663% in three years.
Expansion plans in the US, Middle-East and Asia
LaundryHeap, founded in 2014, offering door-to-door laundry and dry cleaning solutions now aims toward a broader vision of expansion from this Series A funding. They have plans to expand in the US, Middle-East and Asia. The London startup marked this as the second investment from Sova VC since its establishment last year.
Further, Sova VC has also invested a $2.5 million (£1.8 million approx.) under Series B in Smartcat, a cloud-based translation service provider and localisation platform that connects businesses, translators, and translation agencies in a single “Connected Translation” delivery loop.
Alexander Chikunov, Partner at Sova VC, said, “Laundryheap stood out to us as a company with excellent unit economics, the ability to scale (even during a difficult period), and an impressive senior leadership team. It’s a great example of the type of company we want to work with and fits perfectly with our focus on high-potential technology companies with a particular emphasis on B2B and B2B2C marketplaces and software platforms.”
“We look forward to working with Deyan and the team to consolidate their position as the world’s fastest-growing laundry and dry cleaning marketplace and grow its market share in the years ahead.”
“Virus wash” solutions
LaundryHeap services are available in the international market, which includes the US, UK, the Netherlands, Ireland, the UAE, Singapore, Bahrain, Kuwait and Qatar. The company offers its services in 5 cities in the US now growing fast with 50-100% month-on-month growth. LaundryHeap continues its growth and aims toward growing triple in size by the end of 2021.
LaundryHeap’s sustainable business model helped them to record high year-on-year growth. After the COVID-19 outbreak, they arrived with unique solutions to deliver the laundry services in hygienic and virus-free cleaning.
During the pandemic, they introduced the new “virus wash” solutions and extra hot cleaning which was another groundbreaking solution for the customers.
Deyan Dimitrov, CEO & Founder of Laundryheap, said: “We’ve never focused on the kind of growth at any cost’ expansion that other on-demand businesses have and our approach to fundraising reflects this. We bootstrapped for the first few years of our operation and didn’t raise our Seed round until we were confident in our model. That’s why this is a really exciting chapter for us. We’re raising this Series A because it’s the right time to focus on more rapid expansion and the round will enable us to consolidate our position as the best on-demand laundry platform in the market. We’re delighted that Sova VC has led this round and we’re looking forward to working with them closely over the coming months and years.”
Considering sustainability as their business model, they adopted green cleaning technologies and a low-carbon footprint for their delivery services. Adding to this, the company started its services by associating with major brands and B2B customers.