Londr Revenue, Valuation & Funding (2024)

[00:00] Founders of londr.com. It's a 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. They're now doing $5,000 a month in revenue from 30 customers. They did $200,000 total last year, and they were doing about 12,000 a month when she came in and took over. She's repositioning the company, trying to drive some [00:21] 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 on a seed round. I call it a 3,000,000 cap. We'll see what happens. Hey, folks. My guest today is Jennifer Meyer. She's the CEO of londr, a seasoned entrepreneur and business leader who is for the first time running a SaaS company. She's a goddess of networking and [00:41] business development, which is the perfect combination for this startup, which is like Uber for laundry. Jennifer, you ready to take us to the top? [00:48] >> I am. [00:49] Alright. Uber for laundry, what does that mean? And is it is it b two c or b two b? [00:54] >> It's both. But essentially, if 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. [01:09] And what geographies do you cover currently? [01:13] >> 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 a number of places around The US. We're based in Idaho, so that's where we started. So we have some in Idaho and in Utah on the Wasatch Front. We have some customers in Santa Rosa, California, Denver, Montana, around Houston, Texas. We have some in Southern Florida, Kansas. [01:45] I think that we have some pockets. So obviously, this is a tough business, harder than Pure SaaS, 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? [01:59] >> 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 spend. These people are finding us just through organic searches either on an app store or in either the app store or the Google Play Store or Internet search laundry services. [02:26] Let's go back to that in a second because I wanna get your origin story and how you got into this space. But before we do that, what's the average cost per wash? [02:34] >> The majority of our customers, we have two size bags, kind of a like a medium sized bag and really almost an extra large bag. And an extra large [02:44] What is it? How do you measure them? Is it like gallons or something like that? [02:47] >> Yeah, it's in gallons. The small one is more like a kitchen garbage bag and it would do about laundry for two people for a week. [02:55] And the large small is like 15 gallons? [02:59] >> Yeah. Thirteen thirteen gallons is I think the the kitchen one. And I can't remember what the the other one is, but it's more like the large outdoor garden bags, the big black bags. [03:10] Gallons. [03:11] >> Yes. Yeah. [03:13] Okay. Interesting. And that's like a family of four or something? [03:16] >> Yeah. I would do about a family of four for a week. Yeah. And [03:20] Interesting. [03:22] >> The small bag is $30 and the large bag is 50. [03:25] Mhmm. [03:26] Okay. And that's all in? [03:28] >> All in. Not including tips if you wanna tip your washer. [03:33] Oh, what's going on there, YouTube? Good to see you guys. Now imagine this. You love watching these interviews with SaaS founders. But imagine if we took all of the valuation data out from over 2,807 interviews I've done manually saves you a lot of time. Well, we've done this. We've built it into the beautiful interface inside of Founderpath. Check this out. I'll show you how you can access this in a second, but you log in, you connect [03:56] your Stripe account, you see your valuation real time. You can see what it changed over the past eighty eight days and even set goals for valuation this year. Now the secret evaluation is there's many different ways to value a SaaS business. So the reason you're gonna see three or four different valuations inside of your Founderpath dashboard, this is all free by the way, is because depending on who's doing the buying of your SaaS company, you're gonna [04:21] get a different valuation. A VC is gonna pay a different valuation. Private equity firm is different. If you're gonna do a minority sale, that's different. And if you sell the whole business, that's a different valuation. You can see all those when I hover over here. Right? So the teal is what a VC would pay. Yellow is what private equity and red is if you sold the whole thing outright. Now what's cool about this is this is [04:42] not built off random data. Again, you guys hear these interviews on YouTube. All these datas are built from real time valuation data points founder share with us on the show. So traction, 1,200,000 seed round, 3.7 raise. They sold 22% of their business. Go in here and filter by the event. Maybe you only wanna see companies that have sold the whole business. Well, here are a bunch that have been acquired, the valuation and the multiple. Maybe you're [05:08] going out right now and you're raising your seed round. We'll go in here and look at all this recent seed deals that went down, what they raised, what valuation they raised at, and what percent that they sold. There's never been a larger dataset of SaaS valuations than what you can get now inside of Founderpath. And we're thrilled to bring it to you. Alright. We're gonna go back to the YouTube video here in a second, but if [05:30] you wanna check this tool out, if you wanna jump in and sign up, you can check it out for free to get your valuation at this link. This link, founderpath.com/products/valuations. Or if you go to founderpath.com and hover over products, click on get your valuation here, and go ahead and sign up to give it a whirl. Again, all that valuation data live right inside the platform. I hope to see you there. Alright. Let's jump back into the [05:56] interview. So break down the economics on that. If I'm a family of four and I wanna use laundr.com, again, guys, it's londr.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 londr get to keep? [06:13] >> Yep. The washer makes $32. So the washer actually makes a pretty good chunk of it. [06:20] Interesting. [06:22] >> 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 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 [06:41] >> our customers and our washers, whether it's discounted soap products or things like that or even advertising on our platform. [06:49] Mhmm. Mhmm. And this makes tons of sense. I guess, again, before we go back and get launch date, what's the volume look like today in the past thirty days? How many is it loads of laundry? I mean, what do you measure? Is it number of washes? [07:01] >> Currently, we've we're we're measuring where my litmus is when I look is what is our revenue? And currently our revenue is only about $5,000 a month. Okay. And I can give you a little bit more background as to where those numbers are and why they are. But so we had about a $100,000 of revenue just this year. [07:22] Like in 2022 [07:23] >> the full full second year of pardon me. Yes. Yes. But we are our our plan is we're raising money. We're, 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, I've already selected my marketing firm. It's a national marketing firm. I know that we're gonna be doing some heavy marketing blasting and getting some customer support people on our team to be [07:50] >> able to market more to the people that we have on our platform. [07:52] Jennifer, how much are you targeting to raise? [07:54] >> 1,000,000 or more. $750,000. [07:57] Okay. And what about what cap do you think you'll be able to raise it on in today's market? 3,000,000, 5,000,000, 1,000,000? [08:03] >> Believe it's around 3,000,000. Yep. [08:05] Okay. Interesting. [08:06] >> And pretty conservative. [08:08] Have you started have you started the process? [08:10] >> Yes. [08:11] What's next step? Do have a term sheet yet? [08:15] >> No. We're I've got really, it's early stages of that presentation, a formal presentation to a local firm, [08:24] >> working with independent angel angels and other angel networks here locally. So it's just starting that conversation of getting meetings, showing pitch deck, etcetera. [08:34] Yep. That's great. And so, the $5,000 a month you're doing right now on revenue, make convert that into number of washes for me. How many loads of laundry is that? [08:44] >> It's about a 100. [08:46] It's about a 100. Interesting. Okay. 100 loads a month right now. And do you have significant geographic concentration, like, Montana or in Utah? Where's the majority of your customers today? [08:55] >> I believe the majority of them are here in Idaho, but we do have consistent customers in California, Kansas, Texas. [09:07] Mhmm. [09:07] >> I think those are probably where we've got the the majority of our consistent every week customers. [09:14] And of the 100 loads you did over the past thirty 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? [09:24] >> 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, property managers who do short term property rentals like Airbnb, who, we just do their laundry for them on a turnover. [09:48] Interesting. So how many unique customers make up the 100 loads per month? [09:54] >> We probably have about 30 customers. [09:56] Okay. Really interesting. How did I you mean, that's the story here. Right? Tell when did you launch the business? What year? [10:03] >> So the business was launched in early twenty twenty, and I was not part of that early launch. There were two co founders and they, 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 [10:24] This is all in 2020. Right? [10:26] >> And 2020 and through 2021. [10:30] Was the seed round closed and how much was the seed round? [10:33] >> It was 900,000. [10:36] What year? [10:37] >> 2020. [10:39] Ah, okay. Okay. [10:41] >> So funding ran out. One of the co founders needed to, [10:47] >> have income. So he had to leave the company and has now since found a job elsewhere and the existing co founder and his advisors suggested that having a female CEO for this type of company would make sense. Mhmm. 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. [11:11] Interesting. Now you coming in as a CEO, I always wonder I mean, they have to give you a of equity to make it worth it. Otherwise, you would just go launch this thing from scratch and do it yourself and own a 100%. So what's the balance? [11:23] >> The equity. [11:26] Or Why take equity in an early stage company versus going and just being selfish and starting one yourself and keeping a 100%? [11:34] >> Well, my strengths are not in technology development. So I would have to pay someone else to do that. Mhmm. 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. [11:54] I think that makes total sense. Can I ask you how much equity they comped you with? [11:58] >> Yep. I'm I'm gonna end up after several rounds at about 20%. [12:03] Okay. 20 okay. That's great. And then the rest of the equity is with the investors and the original two co founders? [12:09] >> Yep. And also with the company in for, stock options for future employees, etcetera. [12:16] Okay. We've already set that aside. That make that that makes a ton of sense. Okay. So after you joined, 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? [12:29] >> Yes. [12:31] Okay. And how do you [12:32] >> We're just do doing organic searches on our website or organic searches for laundry services near me. [12:38] Mhmm. This is a very competitive space though. There's I mean, there are a lot of apps doing tens of millions in revenue in this space. How do you outrank them and what are those keywords you outrank them for? [12:49] >> Well, it's curious that you mentioned that because there are companies, who do laundry services, but they're not a peer to peer, right, like an Uber of an individual and an individual, right? 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 for laundry only [13:24] >> of door to door. There's really only a handful of companies in the country. Actually There other countries who are in a similar [13:38] >> but there's probably about five of us who have any kind of market share, existing market share. [13:44] Jennifer, how do you beat like, how do you beat like a Bolt Laundry, which has 1,300 reviews, a five star rating, or Hamper App, which has 98,000 reviews. These guys rank number one and number two for the search term laundry services near me. This is I wanna understand how you are going to take these folks down with your creativity. [14:02] >> Right. So Hamper App is actually not like us. They are actually a connector. They 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 direct competition. So [14:21] >> 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. [14:30] 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, 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? [14:44] >> Well, you've gotta spend some money on SEO and some marketing. That's gonna help a ton. But what our competitive advantage is gonna be is we're actually in a purpose driven company and that our goal is to really is to make a community of people because unlike Uber, you know, you may 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 [15:12] >> them. So if you're a family, for example, and you've got four kids or three kids or however, and they're 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 a very important need in your [15:32] >> family, the laundry. And so we're focusing on that relationship and that's gonna be our differentiating factor is that relationship, but also we're going to be enabling our customers and washers to find local nonprofits in their communities where you've got maybe battered women and children shelters and they just need some clean clothes or of a [15:52] 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, if they don't find you, it's useless. [16:05] >> Right. Well, part of that's gonna be marketing. Right? And like I told you, we've spent had zero marketing spend in the last couple years. [16:12] Spend to you can't really spend to beat someone on SEO. That's that's it takes a lot of time more than anything else, and it takes domain authority getting above seventy, eighty, 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 [16:32] those stories. Do you door knock in Utah? I mean, how do you get them? [16:36] >> Yeah. A lot of our local customers were were door knocking, but, you know, the customers that we have in, it's interesting. Actually, the the most effective marketing we did was having a a local news station talk about us. And we have the highest hits from that. So it's going to be just getting, the visibility, getting in front of people. [16:58] Yep. Okay. That makes a lot of sense. And if you're at $5,000 a month today in revenue, where were you exactly one year ago? Do you remember? [17:07] >> 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 at about, at this time a year ago, they had finally ramped up to around $12,000 a month over a four month period from about 5 to 7, 9 [17:27] So you guys have shrunk a bunch then over the past twelve months. What happened? [17:32] >> There's a natural attrition rate attrition rate and and this is universal with actually all of our competitors. [17:39] But why? With washed every I mean, people wear clothes every day. They need them washed every week. Why are they leaving you? [17:48] >> I believe that partly is maybe they, you know, they've tried us and they're like, you know what, I'm just gonna do my laundry myself. It's not that they're like, I'll give this a try and I don't like it. Some that could be, you know, this last year was, a pretty significant change in the economy as well and people are tightening their purse strings and people are getting laid off and, you know, that's an easy thing to [18:11] >> 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 gonna have to have regardless. [18:23] So Well, we're we're rooting for you. We'll see what, we'll see what happen. We're out of time though for today. Let's wrap up with the famous five. [18:30] Number one, what's your favorite book? [18:33] >> Daring Greatly by Brene Brown. [18:35] Number two, is there a CEO you're following or studying? [18:42] >> Who I want to emulate is Taylor Swift. She's the one I admire most. [18:47] Number three, what's your favorite online tool for building londr? [18:52] >> HubSpot. [18:53] Number four. How many hours of sleep do get every night? [18:58] >> Six to eight. [18:59] Okay. That's not bad. And what's your situation? Married, single, kiddos? [19:03] >> Married, two kids. [19:04] Two kids. That's amazing. Okay. And do mind me asking how old you are? [19:08] >> No. I'm 50. [19:10] Okay. Last question. [19:11] Something you wish you knew when you were 20 years old. [19:15] >> How to code. [19:19] Guys, there you have it. The founders of londr.com. It's a 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. They're now doing $5,000 a month in revenue from 30 customers. They did $200,000 total last year, and they were doing about 12,000 a month when she came in and took over. She's repositioning the company, [19:40] 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 on a seed round. I call it a 3,000,000 cap. We'll see what happens. Jennifer, thanks for taking us to the top. [19:55] >> Thank you so much. I appreciate it. [19:57] One more thing before you go. We have a brand new show every Thursday at 1PM central. It's called Shark Tank for SaaS. 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, ARPU, CAC, LTV, you name it, they share it. And the buyers try and make a deal live. It is fun to watch every Thursday one [20:22] p. M. Central. Additionally, remember these recorded Founder interviews go live. We release them here on YouTube every day at two p. M. Central. 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