On-demand laundry service Laundrapp, which recently went into administration after running out of cash, has been acquired by Inc & Co Group.
Once touted as the “Uber of dry cleaning”, Laundrapp was founded in 2014 and initially operated in London, Edinburgh and Birmingham before rolling out across the UK.
It had attracted over £15m in funding rounds but encountered cash flow issues after its investors – who included ICAP founder Michael Spencer – declined to stump up more capital.
Administrator FRP Advisory said in a statement that Laundrapp had “suffered unsustainable cash flow pressures in recent months after the reserves of the business had been exhausted and further investment from existing shareholders was not forthcoming”.
Now Inc & Co, which recently bought Leeds agency Brass out of administration and has also picked up digital agency Fast Web Media and mobile app developer Cuhu, has stepped in and acquired the assets for an undisclosed price.
“I was inspired by the work of the Laundrapp team, and the great product they have built. This business, with its ambitious growth plans, is a great fit within our group,” said Jack Mason, Group CEO of Inc & Co.
“It’s very much a part of our strategy to have forward-thinking technology, and digital products and services within the group. I’m looking forward to supporting the Laundrapp team on their mission.”
The dry cleaning industry, worth $17bn globally in 2017, is now projected to reach worldwide sales of $52bn by 2022, according to research by Absolute Markets Insights.
Dominik Wellmann, CEO of Laundrapp, said the company would remain based at its London HQ after the deal.
He said: “It’s business as usual for our customers, the Laundrapp team, partners and suppliers, and I’m excited to be receiving additional support from the group with our ambitious growth strategy.”