Laundrybox expands its services – Wamda

At the end of 2015 Laundrybox’s
business model, and solid teamwork, secured them the third
place at Forbes Middle East’s
15 Most Promising UAE-Based Startups in
2015.  

The list, drawn up by the magazine, was based on
the amount of money raised, investor perception, executive team,
market reach, website ranking and number of employees.

It has been
two years since the launching of the “modern
laundry” service, one that relies on smart laundry lockers’ that
allow customers to deposit their dirty clothes, and receive an SMS
notification when they’re ready.

So far, things are going great for the startup,
according to founder Bader Al Kalooti, who maintained that the
company’s performance exceeded the team’s expectations in terms of
profit, expansion and future plans.

The cofounders Bader and Fahed Al Kalooti. Their startup was
chosen Forbes Middle East as the third  most Promising
UAE-Based Startups in 2015. (Images via Bader Al
Kalooti)

Growth

Launching in 25 buildings in Dubai with a 1,000
monthly customers and 20 employees, the startup has since grown to
reach 70 buildings throughout Dubai.

“We’ve expanded our services to many places,”
Bader told Wamda, “especially Dubai Marina, The Palm, The Greens,
Jumeirah Lake Towers and others. The company now has a team of 65
employees including drivers, business managers and IT.” They have
7,000 users in total.

Not relying solely on its locker
system they have recently developed
an
“uber-like app”, said Al Kalooti, to help
customers find nearby lockers.

“We launched the app almost six months ago, and
we have managed to attract more than 3,000 customers who have the
freedom of choosing the time it suits them,’ said Al Kalooti, “and
doing all payment procedures on the app.

“People who have the chance to use lockers or
the app, usually opt for the first choice because they don’t have
to coordinate with anyone,” explained Al Kalooti, “and they prefer
[to have] a 24/7 automated system.”

“Even if the the locker system is still a solid
tool for us, we can’t be available in every building,” he added.
“So, if customers want our services, they have to use the app. We
are one of those rare companies who have an app, laundry service
and high quality services.”

Aside from all these successes, Laundrybox
successfully sold its first franchise rights, expanding outside of
Dubai for the first time. It is expected to launch
Laundrybox’s service in
Qatar in the first quarter of 2016.

The Dubai team aids in training and following
logistical procedures and quality standards. With several requests
for franchises they have decided to use Qatar as a testing
ground.

Profits yet?

Al Kalooti told Wamda that while Laundrybox is
making money, it’s not making profit yet, as all money is being put
into business development. “We don’t care about making profit now,”
said Al kalooti, “but about making the maximum revenues so that
they can be reinvested in the company. And we’re doing that pretty
well.”

After raising $1.3 million from nine investors
for their Series A round and $1.4 million in the Series B round,
Laundrybox called for a Series C round, which capped for $2
million, a round raised by previous investors, along with
Mena Ventures Investments
(MVI) and individual investments.

Al Kalooti said that the money will be invested
in “preparations and launching of their set of features, and
expansion to extra sites and launching a marketing campaign (a
digital campaign on social media, the first since the launching of
Laundrybox) and developing the new platform MyBox”.

The brothers at an exhibition in Singapore. They might expand
to all of Asia.

What is MyBox?

For Al Kalooti, MyBox is the natural succession
to LaundryBox’s business model. “We realized that the system that
we created and the technology we developed could be used to
facilitate other conveniences, not just laundry,” Al Kalooti said.
“We have the logistical services and technology as well as the
lockers, which constitute a basis for distribution, and [we have] a
customer base who will use our lockers for other
purposes.”

MyBox will be launched at the beginning of 2016.
The platform will offer several services, one of them being
Laundrybox. “The idea is about offering an umbrella of convenient
services in one gate, as if we’re expanding our services
horizontally using the same infrastructure and the same concept:
complete automation for every procedure.”

The platform will also host Storage Box for
clothes, a Shoe Box for all shoe-related services, a Tailor Box for
tailoring services, and a Charity Box to give away unwanted
clothes.

The company plans to partner with well
established tailors, charities, and shoe cleaners.

However, it plans to take the driver’s seat in
logistical and communication procedures, in order to remain in
control of their product, from start to finish.

Like any other company, MyBox will launch in
stages. It will have a brand new site in the coming few months.
This stage of business renovation was very challenging for Al
Kalooti, who said that it was like launching a new company from
point zero, especially because every service has a completely
different dynamic. “You have to understand each one of them and
invent a suitable system for it, something that required a lot of
research and development,” said Bader. This might be true,
especially in a traditional sector that has long been characterized
by the human touch.