The deal, if happens, will be third stake purchase by Amazon in any Indian company and if acquisition happens then it will be first ever acquisition by Amazon in India. Earlier Amazon has backed two other startups in India which include online financial services marketplace BankBazaar and retail firm QwikCilver Solutions
In this possible deal Amazon could lead a funding round of $15-20 million in Housejoy which is backed by Matrix Partners and incubated at Growthstory, an angel investment and incubator arm of serial entrepreneur & husband-wife duo – Meena and Krishnan ganesh.
Notably, Amazon, along with Google, has already entered into online home service segment in United States. In March, it rolled out Amazon Home Services, powered by service marketplace start-up TaskRabbit. While Google is quietly beta-testing a new AdWords Express product in the Bay Area (California) over the past several weeks. Home Service Ads invites plumbers, cleaners, locksmiths and other providers to advertise and manage customer inquiries, correspondence and appointments, all through Google.
Amazon’s Home Service, which offers more than 900 professional services, has recently expanded Home Services to 15 cities in the US.
Therefore, investment in on-demand home service startup like Housejoy is significant for Amazon as it could foretell heightened interest in the on-demand home service space in India too. It could mean that home services can join the likes of other hot on-demand sectors such as taxi booking, groceries, food delivery in attracting investor attention.
What Amazon is doing with US-based on-demand home service startup TaskRabbit, it is now wanted to repeat the same in India with India-based on-demand home service startup Housejoy which is currently present in Bangalore, Ahmedabad, Pune, Mumbai and Delhi & NCR.
The eight-month-old HouseJoy has so far raised $4 million from single round of funding.
If this Amazon investment in Housejoy materializes, the money raised & backing from company like Amazon will help the Housejoy expand pan-India.
[Top Image – Computerild.de]