After acquiring laundry brand Chamak, Chennai-based laundry-on-demand start-up Wassup is planning to raise $20 million as part of Series A fund raising, with a valuation between $40 million and $60 million.
“With the acquisition of Chamak, we will be the largest player in the on-demand laundry category and will be raising Series A funds from institutional investors as a combined entity with Chamak in the next six months. The acquisition will help increase our valuation from $40 million to $60 million,” said Balachandar R, co-founder & CEO of Wassup.
Wassup has sales turnover of ₹10 crore, with presence across five cities including Chennai, Delhi and Pune. Chamak is a smaller company with presence limited to Mumbai with a turnover of ₹1.5 crore.
The money raised is expected to help the start-up acquire more laundry service companies.
“We will look at more acquisitions through equity based deals as there are about 20-odd start-ups in this space, to help us expand to new territories,” added Balachandar.
Heralding the first consolidation among on demand based laundry start-ups, Wassup is also eyeing an IPO in 2018, when its existing angel investors are likely to exit. The five-year old Wassup recently raised pre-Series A funding of $2 million from HNIs and angel investors.