Helpling today announced a new round of investment, as the on-demand cleaning service hatched by Rocket Internet tries to diversify its business.
The Berlin-based company was launched out of Rocket back in 2014 and expanded rapidly into nine countries during its first year. The company said it has now raised another $11 million in venture capital, bringing its total to $70 million. Investors in the latest round include APACIG, which led the round.
The company currently operates in nine countries and said it would use the money to “expand its marketplace to include additional household services.”
“Our core business model is on a clear path to profitability within the next year,” said Benedikt Franke, cofounder of Helpling, in a statement. “The additional investment is an important step toward positioning Helpling as the hub for all home services, and [building] an iconic consumer brand.”
Despite Helpling’s fast start, the on-demand cleaning service market has proven to be brutal.
In July 2015, Helpling acquired U.K.-based rival Hassle. Later that year, Helpling closed its own Canadian operations. And it also considered but passed on acquiring U.S.-based rival Homejoy, which later closed its doors.
Following this shakeout, Helpling insists that it’s stable and that about 85 percent of its customers are long-term, repeat clients. In January, the company had begun to introduce new services in 20 of its markets, which include such areas as painting and assembling furniture.