PYMNTS-MonitorEdge-May-2024

On-Demand Home Services Player Handy Got $50M Richer

When it comes to on-demand home services startups, some investors are still willing to lend a hand.

Handy — a mobile app that connects customers with contractors who provide housekeeping and other at-home services (such as furniture delivery and assembly) — has raised $50 million in a Series C round, reports TechCrunch. Fidelity Management — a new investor in the New York-based startup — led the round, which was also participated in by existing investors TPG Ventures, General Catalyst, Highland Capital and Revolution Growth.

Via the outlet, which now cites Handy’s valuation at $500 million, Handy attests to have completed 1 million service bookings between its 2012 launch and June of this year. The company’s CEO and cofounder, Oisin Hanrahan, says that his service (of which COO Umang Dua is the other cofounder) — with “hundreds of thousands” of customers and around 10,000 professionals registered — books 100,000 jobs per month.

As for Handy’s plans for the latest capital infusion, Hanrahan told TechCrunch that the company is looking to invest in the 28 markets where it is presently active (including major U.S. cities and London) before expanding both domestically and abroad towards the end of 2016.

“We want to deliver a better customer experience and a better experience for the pros on our platform,” remarked Hanrahan. Referring to the company’s intent to expand beyond cleaning services (which, according to TechCrunch, represents 80 percent of the jobs on the Handy platform), the CEO additionally stated that “we want to deliver every service to every home.”

Among the potential obstacles to Handy’s growth, TechCrunch points to a couple of in-progress lawsuits against the company, filed on behalf of contractors in relation to their 1099 status. It’s a similar situation that contributed to former rival Homejoy being driven out of business, the outlet notes.

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PYMNTS-MonitorEdge-May-2024