A Charlotte valet laundry startup is ready to expand its laundromat franchise concept into several new markets after its latest funding round.
2ULaundry, a valet laundry and dry-cleaning pickup service, announced Jan. 31 a $20 million Series B fundraise. Atlanta-based Level 5 Capital Partners, a private equity firm founded in 2009, led the funding round. As part of the funding, the startup plans to launch a valet laundry service in Atlanta this month.
In 2020, the startup founded LaundroLab, a modern laundromat that serves as a counterpart to 2U — and as a franchise opportunity. 2U aims to use the capital boost to open 25 LaundroLabs over the next year and hire about 350 team members, with 50 being in Charlotte. The company will also expand its 2ULaundry subscription service to more than 20 new cities this year.
Alex Smereczniak and Dan D'Aquisto co-founded 2ULaundry in 2016 to put a modern spin on the "old-school mindset around chores" and "make laundry happy." That mission is reflected in its LaundroLab facilities, which include high-end amenities, play areas for children, arcade games, lounge access and free Wi-Fi.
Due to challenges with Covid-19, 2ULaundry was forced to reevaluate how the startup would continue. It rolled out in 2021 with an updated mobile app, website and new subscription model — 2ULaundry 2.0. That platform allows its customers to track their laundry order, manage their subscriptions and have a guaranteed, one-day turnaround.
"The $46 billion laundry and dry cleaning industry is one that is yet to be innovated at scale, and 2ULaundry and LaundroLab are on a mission to change that," Smereczniak said. "Our two brands compliment each other in that 2ULaundry's pickup and delivery volume gets layered on top of modern, tech-enabled, franchised LaundroLabs."
The LaundroLab has boosted its store revenue further than a traditional laundromat service, he added. 2U has collaborated with 29 franchisees who have committed to building more than 100 LaundroLabs across the country.
Additionally, the company is working to land national partnerships with gyms, fitness studios and Airbnb hosts.
With the latest fundraise, 2U has closed a total of $24.5 million since launching. Its valet laundry service is currently available in Charlotte and Tampa, Florida, according to the 2U website. Other cities the company is targeting include Charleston, Miami, Dallas, Austin, San Antonio and Phoenix.
"We are focused on scaling thoughtfully, and our partnership with L5 equips us with the resources to do so as we set out to 'Make Laundry Happy' nationwide," Smereczniak said.
