Home service firm Housejoy secures $4M from Matrix Partners
Home services marketplace Housejoy has raised $4 million in Series A funding from Matrix Partners, which has been used to scale the company's technology and expand to new cities.
Launched this January, Bengaluru-based Housejoy has been growing 30-40% on a weekly basis and is currently fulfilling close to 1,500 orders a day. It has partnered with close to 2,000 service providers across eight cities on its platform, and is expanding to two more cities this month. The company takes a 10-25% cut of the service depending on the service provided.
"Our basic premise was that listing sites were not working for customers nor service providers. So, the problem was ripe for disruption," said Arjun Kumar, who co-founded Housejoy with Sunil Goel, formerly the head of operations at Pearson-acquired TutorVista.
"India has a large home services economy. The next large horizontal marketplace is going to be a services marketplace," commented Vikram Vaidyanathan, Bengaluru MD of Matrix Partners.
The home services industry in India is growing rapidly with about 69 startups founded in 2014, according to startup industry tracker Tracxn. Housejoy's competitors include, among others, LocalOye, which raised $5 million from Tiger Global and Lightspeed Venture Partners; UrbanPro, which received $2 million from Nirvana Ventures; and UrbanClap, Taskbob, and Qyk, all of which have raised seed funding from institutional and angel investors.
"Home services are supply agnostic"customers do not care who the service provider is as long as the problem is fixed. So, we decided to ensure supply at standardised prices," said co-founder Kumar. The company is currently in talks to raise another Series B round.
"The biggest difference between Housejoy and others is that it's a full-stack marketplace. They are taking ownership of the user's problem and guarantee that the service provider shows up," added Vaidyanathan of Matrix.