Housejoy promoter Sarvaloka Services on Call logs Rs 68 cr loss in 2015-16: CEO Saran Chatterjee says clocked revenues of Rs 3.5 cr

Sarvaloka Services On Call Pvt Ltd, promoter of Housejoy, reported total losses of Rs 68 crore in FY16 on revenues of Rs 17.1 crore, data from the Registrar of Companies (RoC) shows. The on-demand service company is clocking revenue of about Rs 3.5 crore per month, according to Saran Chatterjee, CEO. Chatterjee added the firm is incurring customer acquisition cost of Rs 400-450 and each customer contributes a lifetime value (LTV) of Rs 800. The company receives 4,500 orders daily and charges a commission of 20% on an average ticket size of Rs 1,300.

Gurgaon-based UrbanClap Technologies India, among the largest players in the segment, reported a total loss of Rs 59 and total revenue of Rs 2.8 crore for the year ended March 31, 2016, according to company’s filing with the RoC.

Beauty services capture the largest share of business for Housejoy i.e. 30% in revenue and about 25% of the total orders seen by the company. The average ticket size of beauty services was recorded between Rs 1,300-1,400, according to Chatterjee. Housejoy runs its beauty services in-house and has employed beauticians on its payroll, which helps the company make better margins on beauty services, Chatterjee added.

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In addition to beauty services, Housejoy also developed its in-house team for laundry services following the acquisition of cleaning and laundry start-up MyWash Technologies in 2016. Currently, laundry services only contribute 10% share to revenue but Chatterjee expects the share to grow in 2017.

In terms of number of orders, home and appliances repair, plumbing, electrical and carpentry collectively fetch about 50% of the business for Housejoy.

Housejoy is also exploring opportunities in the B2B ( business-to-business) side of the business. “We have tied up with companies like Oyo, Treebo, Hindware and Asian Paints. For Oyo and Treebo, we are providing services for all of their properties. Under brand partnerships such as the ones with Voltas and Godrej, we become their fulfillment partners for some of their appliances,” Chatterjee said. “We have partnered with Hindware for their plumbing appliances, 3M for all their car products. This has helped because it brings credibility in the business and at a very low customer acquisition cost,” he added.

Currently, the company is present in Bengaluru, Delhi, Mumbai, Hyderabad and Chennai. “Our expansion is category-specific and and that helps in partnership. We look at the breadth of the brand and the nature of the category for expansion plans. For a category like appliances, we will be looking at expanding to a lot more cities such as the top 20 cities in 2017,” said Chatterjee.

The company has raised $ 27 million till date. In June 2015, Housejoy had mopped up $ 4 million from Matrix Partners in Series A funding. Six months later, the company raised $ 23 million in Series B funding led by Amazon. Other investors such as Vertex Ventures, Qualcomm and Ru-Net Technology Partners also participated in the funding.