Browse Category: Startup News

Bankruptcy Looming In The Horizon For HomeJoy

Chapter 11 bankruptcy has been filed for the once hopeful startup HomeJoy. This announcement was delivered via blog post. The startup was founded by Aaron and Adora Cheung in 2013. It gave customers the option to have repairs and cleaning done in their homes by professionals on call.

After raising $38 million in venture funding, they had aspirations for expansion
and were planning to do so. But, this expansion was cut short due to “many unresolved challenges in the home services space.” This is a statement from the July blog post. One founder said that worker classification lawsuits are to blame for the mess. Reclassifying contractors as employees could raise cost 20 to 40 percent in some cases.

On the flip side of the spectrum we have Handy, formerly known as HandyBook. It is another venture startup cleaning and repair service, which has raised over $110 million to date. They are in the lead when it come to hiring pre-screened, qualified, independent professionals. They offer a wide range of services as well. They have professionals you can book for cleaning, moving the heavy things you don’t want to, home repairs and painting ti name a few. It is quickly becoming the go-to for on call services.

You know that vacation rental that you wish you never threw that party at? Handy pros will gladly come and tidy the place for a fee. Is that leaky faucet driving you bonkers? You can have them fix that too. It really is easier now than ever to get things done without all of the effort. If you (like most of us) are busy most of the time, this service could really come in handy. The open market left by the bankruptcy of HomeJoy could spell an even larger customer base for Handy.

If they can keep their momentum going, they’ll continue to expand and profit. Only time will tell if they will remain on top of their business model.

Click here for the full article.

Handy Proves There Is A Need For Home Service Platform By Raising $50 Million More In Funding

Home service startups have been met with plenty of challenges, and many of the challenges have proven to be too much. Many have found themselves collapsing under the logistics and the pressure of creating a home service platform that works. Handy however, an app that helps connect customers with tradespeople that can provide needed services is not facing the same problems. While they admit that there are challenges within the industry, they have been able to circumvent them so far and announced that they have been able to raise another $50 million to help expand the reach of their business.

The money was raised under the lead of Fidelity Management as part of a Series C round that also involved other previous investors of Handy including Revolution Growth, General Catalyst, Highland Capital, and TPG Growth. The new round of funding means that Handy has now raised about $111 million and although Handy will not comment on their business valuation, experts believe it would have to be around the $500 million mark.

The company was founded by Oisin Hanrahan the current CEO of Handy and its COO Umang Dua along with Ignacio Leonhardt and Weina Scott who have since left the company. It was launched in 2012 and since then has completed more than 100 million bookings according to Hanrahan. On demand services on the rise right now as customers want to be able to find just about anything they need on their smartphone. Therefore, it only makes sense that having a platform to find help for home services could blossom.

Hanrahan stated that the company wants to offer customers a great experience and want to make it easier for pros to use the platform so that both sides walk out of the arraignment satisfied. He also added that at the moment about 80% of all jobs are home cleaning services, but they want to encourage more tradespeople to get online so that customers can find all trade services online via the helpful tool.

Right now Handy is in 28 markets and with the new round of funding Hanrahan wants to invest more into these markets to help grow membership numbers. Cities include many major US cities as well as a few international markets such as London. As these grow Handy also has its eye on further expansion to open up its platform to a wider base of customers and professionals.