SBricks, a home service providing startup, has announced the acquisition of HomeCues which aggregates home service providers. The deal is speculated to be worth over $1 million.
After completion of the acquisition process, HomeCues will continue to work as a separate entity under its original name. While one company will focus on business-to-business operations, another will focus on business-to-consumer operations.
D Nithin Reddy, CEO of SBricks, said,
We thought this would be a good synergy, bringing together our last-mile ownership and their aggregator model under one umbrella. We are aiming at standardising these home services. Once we have created a perfect model in Hyderabad, replicating this to other cities is not going be a problem.
This acquisition marks the second startup acquisition for SBricks. Now, the company is looking to acquire a laundry startup by the end of this year. Last year, in December 2015, it had acquired Melway, a facility management and hands-on services player.
Nithin Reddy believes that a hybrid model is the way forward in the sector. He wants to take the lead by consolidating business through acquisitions and building the platform’s brand in the market.
Founded in 2015 by Nithin, SBricks offers 40 services with its list of pre-approved, carefully screened service providers. After acquisition, Melway retained its trade name and existing team structure.
Since its inception in April 2015, it has expanded its operations from Hyderabad to Bengaluru, Vishakhapatnam, Kochi and Tirupati. Its list of clients include Big Cinemas, Asian Movies chain besides large gated communities, individual homes and small apartment blocks in the Hyderabad region.
As per the reports, the Indian home services space is estimated to be around $7-8 billion. According to KPMG reports, unorganised laundry market in India is a Rs 2.2 lakh crore opportunity and is set to grow even bigger.