On-demand laundry platform cleans up in $3.5m investment round

An on-demand laundry platform is set to continue its international growth following a multi-million dollar investment round.

Laundryheap has secured $3.5m in a new Series A funding round led by Sova VC, with participation from the SidebySide Partnership.

Founded in London in 2014, Laundryheap offers 24 door-to-door laundry and dry-cleaning services to consumer and business customers.

In 2020 the firm expanded across the US and Middle East, and aims to use the funding to triple the size of the business by the end of 2021.

Deyan Dimitrov, CEO and founder of Laundryheap, commented: “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, added: “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.”