Hyderabad: Tech-enabled laundry services UClean is planning to raise about $3 million in funding six months from now as it plans to expand its centres in the country. The company that offers do-it-yourself laundry services and also pick-and-drop services was launched in October 2016 and has currently five stores in operations in Delhi (four) and Pune (one). It launched its centre in Hyderabad with actors Kunal Khemu and Soha Ali Khan inaugurating it.
Speaking about the company’s plans going ahead, UClean Founder Arunabh Sinha said, “We have invested Rs 50 lakh in the company in the last six months of operations and have raised about $1 million from Franchise India and Mumbai-based Angel Investor. In the next five years we are planning to set up 350 stores all across India and for that we would be looking at raising $3 million after six months.”
About specific plans for Hyderabad in particular, Sinha said that they are looking setting 50 stores in the city in the next five years and out of that 8-10 stores will be operational this year itself. “For both the Telugu-speaking States, we are looking at setting up 70-75 stores in the next five years, with major concentration on tier-1 cities as of now,” he added.
The company works on the hyper local model and every store is built through franchisee model and a single store would entail an investment of Rs 15 lakh to Rs 18 lakh. Right now, the company runs four of its own stores in Delhi which is operationally break-even and is making sales of Rs 3 lakh with a profit of Rs 1 lakh per month.
UClean charges a royalty of seven per cent of the sales and that is how it is making money. For the laundry systems it has partnered with Alliance Laundry systems who provide the machines and setting up the whole centre.
Speaking about their association with UClean Actor Soha Ali Khan said that the DIY model is very successful in countries like UK and US and it would be not too far when this will also become a culture in India. “When you do the laundry yourself, you know exactly what is going into the machine and you are in the control of the washing,” Soha Ali Khan said.