Housejoy: Get Home Services On-Demand

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Where will you go if your wife calls from home complaining that the switchboard has stopped working? What if you have a wedding to attend but don’t have time for a makeover at the salon? A few years back, your only option would be to hastily search for an electrician and simply skip the salon trip.

But now, you don't need to face the hassle of finding a professional. All you need is to rely on the services of startups like Housejoy. Housejoy provides home services online and has significantly leveraged the on-demand online economy. Read this article to learn about Housejoy and its journey of growth.

Housejoy - Company Highlights

Startup Name Housejoy
Headquarter Bengaluru, India
Sector Online Home Services
Founders Arjun Kumar and Sunil Goel
Founded 2014
Area Served India
Parent Organization Sarvaloka Services On Call Pvt Ltd.

About Housejoy
Founders of Housejoy and How it Started?
Housejoy - Name, Tagline, and Logo
Housejoy - Business Model and How it Works?
Housejoy - Funding and Investors
Housejoy - Startup Challenges
Housejoy - Competitors
Housejoy - Future Plans

About Housejoy

Housejoy is an on-demand online startup that provides a variety of services which include plumbing, beauty, laundry, home cleaning, computer repairs, carpentry, pest control, etc. The company is a pioneer in introducing geo-targeted technology when it comes to home services. Housejoy has its services running in 6 cities with more than 10 categories, that too in a highly fragmented sector.

The app and website of Housejoy are akin to a cab booking system where you are first asked to provide your location and then book a service. Once the user selects a location, various services available in that area are displayed to the user. It works similar to food delivery apps like Swiggy and Zomato. And like many other online platforms, users can pay through online modes, banks, and cash. The app was wildly successful and was known for its reliability with more than 1 million customers and 500,000+ downloads in its initial years.

Founders of Housejoy and How it Started?

Arjun Kumar and Sunil Goel founded Housejoy in the year 2014.

Sunil worked in the IT leadership team for two decades in TESCO and eventually switched his job to TutorVista as the head of operations. He started to learn about how startups and their functioning. Sunil launched a video platform to pre-screen candidates before they are hired in a company. This platform was named as VU First.

While Sunil was working in TutorVista, he met Arjun. Bookadda was the startup initiated by Arjun and he had raised $5 million funding for this venture. Bookadda was eventually acquired by Sapna Group.

Arjun Kumar and Sunil Goel founded Housejoy
Housejoy's Founders

Arjun had worked for MakeMyTrip. He had experience working in different fields like product development and payment systems at different companies. While Sunil and Arjun were exchanging various ideas for startups, they felt there are several issues with home cleaning and maintenance. It was a realization of the tremendous potential in this field.

After working on their startup for around 3 years, the duo called it quits. Many uncited sources say that the founders were forced to quit by the board members.

Also read: De Space- For Opulent Design and Decor Solutions

The founders then decided to launch a startup that provides services at home and wanted a name which depicted the offerings. That is when they came up with Housejoy which means the joy of being served at your home with satisfaction.

The logo of Housejoy is the roof of a house and under that roof is a smile which depicts the name Housejoy.

Housejoy - Business Model and How it Works?

HouseJoy works on a marketplace business model where the company charges commission for services delivered through its platform. The commission varies across different categories. Some range from 7% to 10%, others lie in the range of 10% to 15%, and in case of high ticketing services like construction and renovations, the commission may go up to 20%.

The brand offers its services on its website and mobile app. Customers simply need to choose a service from the available options and book it. The service provider will reach the customer's house and perform the task. Housejoy works as a mediator where service providers and consumers can find each other and connect.

Housejoy - Funding and Investors

In June 2015, the company received $4 million in Series A funding from Matrix Partners. It then received $23 million in Series B funding from Matrix Partners, Qualcomm Ventures, and ruNet. This was the time when the company hired Saran Chatterjee, former vice president of Flipkart, as the CEO.

Due to the gradual decline in Housejoy's performance, the company had no funding for approximately 3 years. In December 2018, the company had another round of funding where Matrix invested about $1.34 million and Vertex Ventures, RTP Ventures, Sama Capital, and Qualcomm Ventures together injected $1.58 million in funds.

Serial entrepreneur Ganesh Krishnan also participated and invested $ 327 thousand in this round. Amazon chose not to invest this time.

Relevant read: - A Way to Enhance Sleep Health

Housejoy - Startup Challenges

One of the biggest challenges for Housejoy was profit generation. The company had been working in more than 12 cities in India and currently operates only in 6 cities. The reason behind shutting down operations in some cities was the challenge of surviving and sustaining in the absence of profits.

The second challenge was in the form of competitors and emerging concepts. Brands like UrbanClap which run almost on the same concept were growing fast and it was difficult for Housejoy to compete with them.

Housejoy - Competitors

The biggest competitors of Housejoy today are UrbanClap, TaskRabbit and Urban Pro. Urban Clap is focusing on strong branding and extremely high-quality service providers where the rates are reasonable. UrbanClap does not focus on fooling around users with discounts or promotional offers but is emphasizing more on timely delivery and reliability.

These are the factors Housejoy needs to take into account. Moreover, Housejoy now needs to come up with robust expansion strategies and once all of this is in place, the startup will flourish across the country.

Housejoy - Future Plans

Housejoy has started focusing on the future of real estate. The company is now providing services for home construction. Housejoy has had a tough time in the past 2–3 years but if it constantly works on customer service, workforce training, and improving the earning capability of service assistants, the startup can be taken to the next level.

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About Rishabh Rathi

I am a computer science student and freelancer. I love learning new things and challenging myself.
  • Nagpur