Wassup, an on-demand laundry service provider, has acquired Doormint from its promoters and angel investors in an equity swap. This acquisition gives Wassup access to the startup’s infrastructure and roughly 2 lakh clients.
As a part of this acquisition deal, lead VC investors in Doormint — Kalaari Capital and Helion Ventures will now be holding equity in Wassup. However, the ratio has not been revealed.
Commenting on this transaction Mr. Balachandar, Founder & CEO, Wassup said,
Wassup is excited to announce its partnership with Kalaari Capital & Helion Ventures, two leading venture capital firms. We are happy to have Mr. Rajesh Raju guide and mentor us in our growth path and will add value with his experience and vision.
Rajesh Raju MD of Kalaari Capital said:
We believe in consumer and retail businesses which build sustainable long term value. We have seen the online laundry space go through rough times but believe that Wassup has a unique hybrid model with strong unit economics and a brand of national presence that can be leveraged to create a leading Laundry brand in India.
This development is surprising as DoorMint had shut down its business last year. At that time, the company offered all its employees a 45-day-severance package, and later helped them find suitable jobs.
Confirming the shut down of its business, DoorMint’s Founder Abhinav Agarwal said to YourStory:
It was coming for the past couple of months now. We couldn’t justify or see a positive unit economics. The market was also getting exceedingly tough. We have been trying to fundraise for a while now, but we only saw a wary bunch of investors.
Wassup is present in 50 stores across 7 cities servicing over 3 lakh customers and claims to have washed over 50 Million pcs so far. The startup has raised seed funding from Das Star Ventures, and a bunch of angel investors.
The company was co-founded by R Balachandar, a gold medalist in his MBA program and the former Retail Head for Hidesign and Durga Das, a silicon valley entreprenuer with over twenty five years of start up experience in the hi tech world.
This isn’t the first acquisition for Wassup. In April last year, it announced the acquisition of Ezeewash to strengthen operations in Hyderabad. Further, in November 2015, Wassup also acquired Chamak for an undisclosed amount in an all equity deal, marking its foray into Mumbai, Pune, Cochin, and Delhi. Thus, DoorMint marks Wassup’s third acquisition in the on-demand laundry space.