UrbanDhobi raises angel funding, to expand in 5 cities

Jaipur: City-based on demand laundry service provider startup UrbanDhobi has raised angel funding from a Delhi-based private equity firm to expand its operations in five more cities, a top official of the company said here on Monday. While the five-month old laundry aggregator didn't disclose the amount, it said the funds will be used to strengthen its technology, expand the business development team and build a bigger pick-up and delivery workforce.
"We cannot disclose the size of the funds because of a confidentiality agreement. But the funds will be used for expanding our operations in five more cities such as Kota, Ahmedabad, Pune, Hyderabad and Chandigarh," said Satyam Mishra, co-founder and chief executive officer of UrbanDhobi, incubated at Startup Oasis. However, he said the focus is on achieving break-even for Jaipur operations and the milestone will be reached in 3-months time. "We are getting orders for about 900 clothes a day and it can easily be scaled up to 3000 in the next three months," added Mishra.
After completing BTech, 24-year-old Mishra, along with his three engineering friends, did jobs for very brief periods which they left to start the company in mid-2015. On the triggers for zeroing in on the laundry service a business model, Mishra said, "Washing clothes is one of the most drudgery jobs, especially if you are a student which we experienced in our college days. That's how the idea was born," said Mishra.
But it was not easy to get off the block without any financial resources even though they had the determination to give shape to the idea. "For some months, we worked as web developers to tie up money. This helped us to start the venture," said Mishra.
The startup doesn't own any laundromats but has tied up with them. While UrbanDhobi's rates are as competitive as in the market, its turnaround time of 24 hours and wrinkle-free wash have found traction with the customers. "Today, 70% of our orders come from repeat customers. Placing orders on app, website or by calling provides a bigger comfort. Also, the pick-ups and deliveries are done at the customer's preferred time. All these facilities make us a better proposition," added Mishra.
The company is now looking for pre-series A funding as it feels the need for more capital for expansion. "We are looking for pre-series A funding which we will achieve in the next three-four months," said Mishra. According to a KPMG report, the size of the laundry market is about Rs 2 lakh crore with 95% of it remaining in unorganized sector.