Laundryheap secures £2.5 million Series A investment led by Sova VC

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On-demand laundry platform Laundryheap raises $3.5m as part of Series A round, Led by Sova VC & joined by The SidebySide Partnership.

●     The on-demand offering has seen a year of huge growth, including expansion to the US and across the Middle East

●     The funding will help Laundryheap continue its growth, with aims to triple the size of the business by the end of 2021

Laundryheap, the world’s fastest growing on-demand laundry and dry cleaning platform, has today announced a $3.5m Series A round led by Sova VC. The round was joined by the SidebySide Partnership.

Founded in the UK in 2014, Laundryheap offers door-to-door laundry and dry-cleaning services to consumer and business customers, including major brands, returning items to users within 24-hours.

This raise follows years of steady growth where Laundryheap has focused on building a sustainable model that centers around repeat custom. A surge in interest following the outbreak of the pandemic has fueled further market growth and led to a series of successful expansions to new markets during 2020, including: the USA, Singapore, Sweden and across the Middle East. The platform now has a presence across eleven international markets.

Across its US and Asian markets, Laundryheap has seen particularly rapid growth since March. In the US, where the platform is now operational in 5 cities, the business is reporting month on month growth of over 30%. In the Middle East, where Laundryheap has launched in Dubai, Abu Dhabi, Qatar, Bahrain, and Kuwait, customer growth has tripled in the last 6 months

During the pandemic, Laundryheap introduced new ‘virus wash’ services and extra-hot cleaning offerings, as well as expanded support for their B2B clients. They’ve also focused on making their supply chain more sustainable through green cleaning techniques and low-carbon transport.

Laundryheap will use the funding to accelerate its expansion to additional international markets, whilst retaining its focus on sustainable growth and profitability.

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.”

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.”

John Bailye, CEO at SidebySide, said: 

“We continue to be impressed by the business Deyan & the team have built. Their business model enables them to deploy their services in new territories and instantly hit the ground running, without being weighed down by the typical costs that come with international expansion. We are delighted to see Laundryheap going from strength to strength as they continue to grow.” 

ENDS

For further information about Sova VC, please contact:

Harry Saunders, ReputationInc
Email: [email protected]

For further information about Laundryheap, please contact:

Rhiannon Evans-Young, Crest Communications
Email: [email protected]

For further information about The SidebySide Partnership, please contact:

James D’Mello, Head of Investor Relations  
Email: [email protected]

ABOUT LAUNDRYHEAP

●     Laundryheap was established in 2014 and is the world’s largest on-demand laundry and dry-cleaning service. The platform allows users to have their laundry collected, washed, ironed and returned to them in a guaranteed turnaround time of 24 hours.

●     The company operates across 11 international markets including: UK, US, Ireland, the Netherlands, the UAE, Singapore, Bahrain, Kuwait and Qatar.

●     Since launching, Laundryheap has cleaned over 10 million items of clothing and grown by 1663% in three years, placing them on Deloitte’s list of fastest growing companies in the UK in 2019.

●     To learn more about Laundryheap, please visit https://www.laundryheap.com/

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Safiya Marzook

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