Londr Revenue, Valuation & Funding (2024)

founders of a launder.com I'd say B2B you know they'll help you do your loads of laundry service chiropractors property managers that need sheets done every week things like that now she just joined actually about a year ago uh they're now doing five thousand dollars a month in revenue from 30 customers they did 200 000 total last year and they were doing about twelve thousand a month when she came and took over she's repositioning the company trying to drive some extra growth here they ran out of funding before she joined and now relying on SEO strategies door-to-door in Utah to sign up these customers aiming to raise 750 000 bucks on a seed round I called a three million cap we'll see what happens hey folks my guest today is Jennifer Meyer she's a CEO of launder a seasoned entrepreneur and business leader who is for the first time running a SAS company she's a goddess of networking and Business Development which is the perfect combination for the startup which is like uber for laundry Jennifer are you ready to take us to the top I am all right Uber for laundry what does that mean and is it is it B to C or B2B both but essentially if you have a laundry need so if you want someone to do your laundry there's someone out there who's willing to do it for you so like uber somebody needs a ride there's somebody out there who has a car who's willing to give you a ride and what geographies do you cover currently currently we're available in all 50 states we have had sign ups in all 50 states but we are targeting we have clusters of customers in in a number of places around the U.S we're based in Idaho so that's where we started so we have some in Idaho and in Utah in the Wasatch Front we have some customers in Santa Rosa California Denver Montana um around Houston Texas we have some in Southern Florida Kansas so obviously this is a tough business harder than pure sauce because you really have a Marketplace you have to build you have two customers you have to sell walk me through that how many cleaners are on the platform today and how many people who need cleaning are on the platform we've had over 2 000 customers sign up over the country and we have close to 5 000 washers and what's brilliant Nathan is we've had almost zero marketing spent these people are finding us just through organic searches either on an app store or you know either the app store or the Google Play store or internet search laundry services let's go back to that in a second because I want to get your origin story and how you got into this space but before we do that what's the average cost per wash okay the majority of our customers we have two size bags kind of a like a medium-sized bag and a really almost an extra large bag and an extra large what is it how do you measure that is like gallons or something like that yeah it's in gallons um the small one is more like a kitchen garbage bag and it would do about uh laundry for two people for a week as small as like 15 gallons 13 gallons is I think the the kitchen one and I can't remember what the um the other one is but it's more like the large uh outdoor Garden bags the big black 30 gallons yes yeah okay interesting and that's like a family of four or something you know I would do about a family of four for a week yeah and the small bag is thirty dollars and a large bag is fifty okay and that's all in all in not including tips if you want to tip your washer oh what's going on there YouTube good to see you guys now imagine this you love watching these interviews with SAS Founders but imagine if we took all of the valuation data out from over 2807 interviews I've done manually saves you a lot of time well we've done this we've built the into the beautiful interface inside of founder path check this out I'll show you how you can access this in a second but you log in you connect your stripe account you see your valuation real time you can see what it changed over the past 88 days and even set goals 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right inside the platform I hope to see you there all right let's jump back into the interview so break down the economics on that if I'm a family of four and I want to use launder.com again guys it's l-o-n-d-r-d.com Jennifer of the 50 I pay for my large 30 gallon bag how much of that will go to the washer versus how much does laundry get to keep yep the washer makes 32 dollars so the washer actually makes a pretty good chunk of it um from a business model perspective it's it's a bit like uber and that it's going to take a volume of customers before we get to a net cash positive or A A profitability standpoint so it's just going to be a volume but by that point we'll be able to have different products that we can sell to them you know upscale upsell to our our customers and our washers whether it's discounted soap products or things like that or even advertising on our platform this makes tons of sense um I guess again before we go back and get launch date what's the volume look like today in the past 30 days how many is it loads of laundry I mean what do you measure is it a number of washes currently we we're we're measuring where my litmus is when I look is what is our Revenue and currently our revenue is is only about five thousand dollars a month um and I can give you a little bit more background as to to where those numbers are and why they are um but so we had about a hundred thousand dollars of Revenue just this year like in 2022. the full second year of pardon me yes yes but we are our our plan is we're raising money we're um going for a safe round or a seed round and we're hoping that after that raise well actually not hoping I know that after that raise that's already selected my marketing firm it's a national marketing firm I know that we're going to be doing some heavy marketing blasting and getting some customer support people on our team to be able to Market more to the people that we have on our platform uh 750. okay and what about what cap do you think you'll be able to raise it on in today's market three million five million one million I believe it's around 3 million yep okay interesting have you started a pretty conservative have you started the process yes What's Next Step you have a term sheet yet no uh we're pres I've got really early stages of uh presentation a formal presentation to a local firm um working with independent Angel and angels and other Angel networks here locally so it's just starting that conversation of unique meetings showing pitch deck Etc yep that's great and so um the five thousand dollars a month you're doing right now on Revenue make convert that into a number of washes for me how many loads of laundry is that to about a hundred because about 100 interesting okay 100 loads a month right now and do you have significant Geographic concentration like in Montana or in Utah where's the majority of your customers uh today I believe the majority of them are here in Idaho but we do have consistent customers in California Kansas Texas I think those are probably where we've got the majority of our consistent every week customers and of the 100 loads you did over the past 30 days is that a one-to-one ratio so one customer is equal to one load or can one customer do two loads in the same month oh yeah we've actually have the higher volume is actually tied to our commercial clients so for example we have a couple of chiropractors and they do two or three loads of laundry with us a week and we also have uh property managers who do short-term property rentals like Airbnb who um we just do their laundry for them on a turnover interesting so how many unique customers make up the 100 loads per month we probably have about 30 customers okay really interesting how did you I mean that's the story here right tell when did you launch the business what year so the business was launched in early 2020 and I was not part of that early launch there were two co-founders and they um were able to get a seed investment from a family member and they with that they were able to build the two apps the customer app the washer app and then also this is all in 2020 right and in 2020 and through 2021. when was the season unfortunately closed and how much was the seed round it was nine million uh nine hundred thousand what year 2020. ah okay okay so funding ran out one of the co-founders needed to um have income so he had to leave the company and has now since found a job elsewhere and the the existing co-founder and his advisors suggested that having a female CEO for this type of company would make sense and so they looked for one and just one that wants to come in you know on a risk on an equity company and so I started last July interesting now you coming into the CEO I always wonder I mean they have to give you a bunch of equity make it work otherwise you would just go launch this thing from scratch and do it yourself and own 100 so what's the balance of equity or why take equity in an early stage company versus going and just being selfish and starting one yourself and keeping a hundred percent well my strengths are not in technology development so I would have to pay someone else to do that so coming up with cash versus jumping in and taking an opportunity that already exists is for me and my strengths is an easier thing to accomplish than starting something brand new from scratch I think that makes total sense can I ask you how much Equity they comp you with yep uh I'm I'm gonna end up after several rounds at about 20 percent okay okay that's great and then the rest of the equity is with the investors in the original two co-founders yep and also with the company in for uh stock options for future employees Etc okay outside that might that makes a ton of sense okay so after you joined um walk me through the growth strategy today you mentioned Google Play and app stores is that where you're getting most of these property manager customers the chiropractor customers uh yes okay and how do you see the organic searches on our website or organic searches for laundry services near me um this is a very competitive space though um there's I mean there are a lot of apps doing tens of millions in Revenue in the space how do you outrank them and what are those keywords you outrank them for well it's I'm it's It's Curious that you mentioned that because there are companies um who do laundry services but they're not a peer-to-peer right like an Uber of an individual and an individual right there there may be a company that does you know wash and fold and maybe they have a delivery service or you've got dry cleaners or laundromats right and yes it is a hugely saturated Market but what is not saturated is the online Market uh for laundry only of door-to-door there's really only a handful of companies in the country there are there are actually other countries um who are in a similar uh um but there's probably about five of us who have any kind of market share uh existing market share but Jennifer how do you beat like how do you beat like a bolt laundry which has 1300 reviews of five star rating or hamper app which has 98 000 reviews these guys ranked number one and number two for the search term laundry services near me this is I want to understand how you are going to take these folks down with your creativity right so hamper app is actually not like us they are actually a connector there are almost a third-party connector so they'll connect the customer to somebody else that will do the laundry they won't they're not actually facilitating the the direct competition so it and the the the competitive Advantage there is pricing because we'll be able to control that price whereas they are essentially it's a third party it's like an Expedia for example but how do you out my point is how do you outrank them right if the keyword you're leaning on is laundry services near me how it doesn't matter really because you know customer will know about you if you don't at least get in the keyword ranking so how do you just get in the rankings in the top five well you've got to spend some money on SEO and some marketing that's going to help a ton but what our competitive Advantage is going to be is we're actually on a purpose-driven company and that our goal is to really is is to make a community of people because unlike Uber you know Uber you might never see the same driver again and with us you may have the same washer Time After Time After Time and you would develop a relationship with them so if you're a family for example and you've got four kids or three kids or however in their different ages and you know the different activities they do and all of the nuances of how you want your laundry done and how you want it folded you have it's like having a house cleaner or somebody who's doing your yard after a while you have a trusted partner who's taking care of of a very important need in your family the laundry and so we're focusing on that relationship and that's going to be our differentiating factor is that relationship but also we're going to be enabling our customers and washers to find local non-profits in their communities where you've got maybe battered women and children shelters and they just need some clean clothes or Jennifer what I'm what I'm trying to get to is like how like this all is remarkable and it's fantastic but if no one finds you just none of it matters right so like how how can people find you I get it you're different and you're not the same but if they don't find you it's useless right right well part of that's going to be marketing right and like I told you we've spent zero marketing spend in the last but you can't really spend you can't really spend to beat someone on SEO that's that's what takes time A lot of time um more than anything else and it takes domain Authority getting above 70 80 90 in terms of Dr rank so like this is I feel like this would be very hard to beat the Legacy players on SEO but I bet there's like some other creative strategies you've already used to sign up these 30 customers tell us a couple of those stories do door knock in Utah I mean how do you get them yeah a lot of our local customers were door knocking but you know the customers that we have in it it's interesting actually the the most effective marketing we did was having a local news station talk about us and we had the highest hits from that so it's going to be just getting um visibility getting in front of people yeah okay that makes a lot of sense and if you're at 5 000 a bucks a month today in Revenue where were you exactly one year ago do you remember I don't because I was not yet with the company but we were actually at that point they were just kind of at the end of their funding and they were just beginning to ramp up and they were about at this time a year ago they had finally ramped up to around twelve thousand dollars a month over a four month period from about five to seven nine so you guys have shrunk a bunch then over the past 12 months what happened there's a natural um attrition rate attrition rate and and this is a universal with actually all of our competitors especially with clothing washed every I mean people wear clothes every day they need them washed every week why are they leaving you um I believe that partly is maybe they you know they've tried us and they're like ah you know what I'm just gonna do my laundry myself it's not that you know they're like I'll give this a try and I don't like it some it could be you know this last year was a pretty significant change in the economy as well and people are tightening their their purse strings and people are getting laid off and you know that's an easy thing to cut which is why we're focusing as well on the businesses because you know chiropractors short-term property rentals it's a need that they're going to have to have regardless so well we're rooting for you we'll see what uh we'll see what happened we're out of time though for today let's wrap up with the famous five number one what's your favorite book daring greatly by brene Brown number two is there a CEO you're following or studying who I want to emulate is Taylor Swift she's one I admire most number three what's your favorite online tool for building lunder HubSpot number four how many hours of sleep do you get every night six to eight okay that's not bad and what's your situation married single kiddos married two kids two kids that's amazing okay do you mind me asking how old you are no I'm 50. okay last question something you wish you knew when you were 20 years old code guys there you have it the founders of alonder.com I'd say B to B you know they'll help you do your loads of laundry service chiropractors property managers that need sheets done every week things like that now she just joined actually about a year ago uh they're now doing five thousand dollars a month in revenue from 30 customers they did 200 000 total last year and they were doing about twelve thousand a month when she came and took over she's repositioning the company trying to drive some extra growth here they ran out of funding before she joined and now relying on SEO strategies door-to-door in Utah to sign up these customers aiming to raise 750 000 bucks on a seed round I call it a three million cap we'll see what happens Jennifer thanks for taking us to the top thank you so much I appreciate it one more thing before you go we have a brand new show every Thursday at 1pm Central it's called Shark Tank for SAS we call it deal or bust one founder comes on three hungry buyers they try and do a deal live and the founder shares back-end dashboards their expenses their revenue our poo CAC LTV you name it they share it and the buyers try and make a deal live it is fun to watch every Thursday 1 p.m Central additionally remember these recorded founder interviews go live we release them here on YouTube every day at 2PM 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