PickMyLaundry, an on-demand laundry service provider has acquired OneClickWash, a startup which provides similar services on a subscription-basis. The deal is said to be an all-cash one. While the financial details of the transaction have not been revealed, but the valuation of the merged entity is pegged at $5 million.
Post acquisition, both companies will continue to run their operations independently. Working as an aggregator initially, the merger will enable PickMyLaundry to offer a hybrid model that combines on-demand and subscription-based services. PickMyLaundry will leverage OneClickWash’s laundry processing unit, management team and tech infrastructure.
Commenting on the acquisition, Gaurav Agarwal, CEO of PickMyLaundry, said,
We are trying multiple models and will adopt all possible strategies for expansion.OneClickWash will help us penetrate deeper within the NCR region, reduce our processing cost and improve customer experience.
Operating in Gurgaon, Delhi, Noida and Bangalore, PickMyLaundry typically partners with service providers to offer an array of services. The company recently adopted a franchise model and has opened its first offline experience store in Gurgaon. It is now looking to further expand its offline strategy post this deal.
OneClickWash was founded in 2015 by Vivek Iyer and Saurav Killa. It provides tech-enabled, end-to-end and affordable laundry services through its cloud laundromat model. The startup offers integrated washing, drying and steam iron services through a monthly subscription based model.
On the other hand, PickMyLaundry was founded by Gaurav Agarwal, along with Ankur Jain and Samar Sisodia in May 2015. The startup has recently raised $200,000 in its seed funding round. Prior to that, it had raised $100k in the same round.
PickMyLaundry competes against the likes of Wassup, Dhobi Wala, and Urban Dhobi, among others. Wassup has recently raised $3.2 million in Series A funding round. The size of the household laundry market in top 10 cities of India is estimated to be over $2 billion, and most of it is still untapped.