Bengaluru-based home services marketplace startup Housejoy has raised $4 million in fresh Series A funding from Matrix Partners. The fund will be used to scale the five-months-old company’s technology and its expansion to new cities.
Launched this January, Housejoy has been growing 30-40 per cent on a weekly basis and is currently fulfilling close to 1500 orders a day. It has partnered with close to 2000 service providers across eight cities on its platform, and is expanding to two more cities this month. The company takes a 10-25 per cent cut of the service depending on the service provided.
“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. India has a large home services economy. The next large horizontal marketplace is going to be a services marketplace.” said Vikram Vaidyanathan, Bengaluru MD of Matrix Partners.
Housejoy is currently present in Bangalore,Ahmedabad,Pune,Mumbai and Delhi & NCR and will soon expand its service in 3 more cities.
Housejoy is facing competition from other startups with similar model such as LocalOye, who raised $5 million from Tiger Global and Lightspeed Venture Partners; UrbanPro, who 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 standardized prices,” said cofounder Kumar. The company is currently in talks to raise another Series B round.”