The home services industry has witnessed a period of volatility leading to the collapse of many firms. Just like in the jungle, the strong survive while the weak succumb to their fate.
In the home cleaning service industry, possibilities for diversification are endless. The increasing investment in technology and innovation within the industry brings about a better customer experience. Though valuable, companies that create innovative solutions like Handy position themselves on the roadmap to success.
Handy cleaning services started around five years ago. Under the stewardship of Umang Dua and Oisin Hanrahan, the company continues to grow organically. It utilizes a mobile platform where clients log in and book for their services. This ideal platform has registered over a million bookings within three years of operation.
The recent market volatility surprisingly works to the benefit of Handy and its investors. The growing volume of business shows the strong bonds they have with clients. Investors have also shown confidence in the company throughout its existence. Handy recently raised a fresh $50 million through its investment partners such as Highland Capital, TPG Growth and General Catalyst. A new partner in Fidelity Management also contributed heavily to the new venture.
This Capital injection raises the additional capital afforded to Handy to over $110 million in the past three years. According to the management, the company aims at diversifying from its cleaning service that accounts for over two-thirds of its operations. With demand for moving services and other handy work, the company feels the need to improve before expanding.
Indeed, Handy has already established itself in almost thirty different markets both in the US and around the world and were even in talks to acquire their largest competitor earlier this year. In this setup, the firm serves hundreds of thousands of customers monthly with a global workforce ranging in the tens of thousands. These market locations will benefit from the fresh injection. Once market optimization has been achieved, Handy then intends to open up to other potentially profitable areas.
It is important to acknowledge the ever rising demand for domestic and commercial cleaning services and handy work. The rising urban population and independent home owners account for this trend. Furthermore, the traditional household maid is unable to do all the house chores efficiently.