Seed Investment Needed for a New Chain of Laundry & Dry Cleaning

Opportunity Snapshot

  • Country: India India
  • Industry: Retail Trade
  • Stage: Seed
  • Investment size: $50,000 / min. $10,000
  • ROI: 25% in 1 years
  • Type of investment: Debt, Equity
Washing Machines in a Laundromat

Investment Opportunity

The business model will work in both B2B and B2C segments simultaneously. We are looking for debt investment and can provide interest of 25-30% annually.

India is going to grow in this business area and there is a need for organised players to provide world-class services and educate the unorganized sector. As per report the Wardrobe Business is growing at around 15-20% every month.

Laundry is a necessary evil. Consumers can stop buying clothes but they would want to keep their existing garments clean. As a result of which the industry have grown by 25-30% every year and in future, we could grow at a modest rate of 22-46% a year.

Service Process Flow:
• Collection from door step
• Tagging: The clothes are firstly tagged with a specific number, mentioned in the invoice given to customers. This procedure is used for identification of clothes once ready for collection by the customers.
• Sorting: After tagging the clothes are arranged in different sets. Some people sort by color. Others sort by fabric type.
• Washing: The clothes are washed in a washing machine using detergent i.e. Surf, washing powder etc. This procedure is only followed when laundry service is required by the customers.
• Dry Cleaning: In this process, the sensitive, expensive and only dry clean recommended clothes are cleaned. The chemical used to clean the clothes in this process is called Perc.
• Drying: The clothes washed in a laundry procedure are dried using dryers.
• Steam Pressing: In this process both the clothes either washed or dry cleaned are pressed and shaped using steam press equipment.
• Packing: Once pressed, the clothes are properly hanged and covered in the plastic wrap and then tagged so that it can be easily identified.
• Delivery to door step within 24 hrs.

What is needed to make this business model work is economically skilled labour and technology.

We plan to work together with a group of retail collection centres for a better reach to customers.

Return of Min 20-30% is expected.

Competitive Advantage

Our business model will work in both B2B and B2C segments simultaneously. In B2B hotels and hostels can be covered. And in B2C lower middle class to elite class families can also be targeted by starting up of franchisee outlets (collection centres) or direct reach. And this could be achieved at half of the price of local unorganized Laundry Man.

And all this at doorstep, the customer has to just leave a miss call (Toll free).
We will pick up the laundry from the customer’s place and deliver it back within 24 hours, at a time convenient to the customer.

Automation of billing and delivery activities
Hand held computers with printers (POS) to every delivery boy for more efficient work system.

Love your Nature
We will provide recyclable laundry bags to every customer for better brand building and brand connection.

Rationale for the deal

India is going to grow in this business and there is a need for organised players to provide world-class services and educate the unorganized sector. As per report Wardrobe Business is growing at around 15-20% every month.

Because of the lack of community resources as well as a high unemployment
rate, residents of India face social and economic concerns that have led to underprivileged communities. In this project, our team assessed the current laundry practices of the residents of India and designed and constructed a communal laundry station that addressed the issues of water conservation, washing related ergonomics and sanitation. The project promoted resident participation as well as concepts of permaculture and sustainability, topics too often overlooked in both developing and developed country like India.

Our team designed and constructed a laundry station, which addressed the issues of water conservation and sanitation. To achieve our project goals, the team identified several main objectives:
• Build strong relations within the community
• Gather information about laundry practices
• Explore options for water collection, laundry and irrigation
• Design laundry station
• Evaluate and revise proposed design
• Build laundry station

Use of financing

Funding is needed for purchase of equipment. The project cost will be around INR 45 to 50 lac.

Opportunity for the investor

We are looking for debt investment and can provide interest of 25-30% annually.

Image Source: Flickr CC, Author: Alison

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