Laundrapp and Zipjet merge to form largest on-demand laundry service in UK, seal new funding
Two of Europe’s biggest on-demand laundry startups are merging today. Laundrapp from London and Zipjet from Berlin are confirming the completion of a previously-rumored merger through which the combined business will become the largest on-demand laundry business in the UK.
Alongside this, the combined business has completed a funding round from existing investors including Toscafund, Hargreave Hale VCT, Henkel, Rocket Internet and further minority shareholders. The amount involved has not been disclosed. News of a planned merger was broken by Sky News back in April this year.
The European on-demand laundry and dry-cleaning market is estimated to be worth around €20bn per annum. Both Laundrapp and Zipjet have benefitted from this demand, with revenues, they say, rising more than 30% yoy. Together, the businesses currently process over 150,000 items of washing each month, with the ‘Wash & Fold’ service representing approximately 25% of volumes. The business says customers tend to start with the classic dry-cleaning offering, but later convert to the laundry and linen offering, driven by its convenience.
London is currently the main market for both Laundrapp and Zipjet, and this transaction gives the combined business-critical operational mass, whilst maintaining two separate brands in the short term.
Oliver Bedford at Hargreave Hale commented: “Bringing together two significant operators within the on-demand laundry industry will help lay the foundations for the next wave of investment into technology and infrastructure. Laundrapp aims to put convenience, choice and value at the centre of its customer proposition and we see this transaction as an important step towards building a sector leading capability.”
Lorenzo Franzi, CEO of Laundrapp, commented on the deal: “Bringing the two businesses together allows us to realise synergies, leveraging our technological advantage and critical mass to better serve customers and partners, and in the process cement our position as the #1 player.”
Source : TechCrunch