Revenues of home services start-up Housejoy soared by 98.8% to Rs 35 crore and losses snipped by 11% to Rs 60 crore for the year ended March 2017, according to chief executive officer Saran Chatterjee.
Revenues of home services start-up Housejoy soared by 98.8% to Rs 35 crore and losses snipped by 11% to Rs 60 crore for the year ended March 2017, according to chief executive officer Saran Chatterjee. The online platform’s performance in FY17 is a marked improvement over the previous fiscal when housejoy.in posted losses of Rs 67.5 crore on revenues of Rs 17.1 crore, according to filings with the Registrar of Companies. In 2016, losses widened 20-fold owing to employee costs, advertising and promotions. Besides, Sarvaloka Services On Call Pvt Ltd, which operates housejoy.in, saw its twin co-founders, Arjun Kumar and Sunil Goel, put in their papers.
In the current financial year, Chatterjee expects losses to reduce further. At present, the platform claims to be clocking losses of Rs 3.2 crore per month on revenues of Rs 4.5 crore. “Apart from providing services such as beauty, repair of appliances and other electronics such as air-conditioner, washing machine, geyser, water-purifier, among others, this year the plan is to start providing services for higher-ticket items such as inverter. As part of our plan, we will soon start selling inverters on the website. Along with the product, we also plan to sell annual maintenance contract to consumers,” said Chatterjee.
Now-a-days, the home-services portal claims to clock between 3,000 and 4,000 orders a day with an average order value of Rs 1,300. With close to 70% of its orders being repeats, the company spends about Rs 650 on acquiring every new customer. Housejoy last raised fresh funds in December 2015. At the time, the start-up raised about $22.4 million (Rs 150 crore) in Series B funding, led by the US-based e-commerce giant Amazon. Other investors, including Temasek’s venture arm Vertex Ventures, Qualcomm and Ru-Net Technology Partners and Matrix Partners, also participated in the round.
It should be noted that Housejoy competes with SAIF Partners and Accel Partners-backed UrbanClap. Other competitors in the market include Zimmber, which was acquired by online classifieds company Quikr in May this year. According to a study by Google and KPMG, in terms of revenue, the digital classifieds market grew at a CAGR of 29.5% between FY 2011 and FY 2015 to reach Rs 2,900 crore. Of this, e-services accounted for 2% at Rs 58 crore. The e-services market is expected to grow at a CAGR of 50%, reaching Rs 440 crore in FY2020.