Boston-founded household services startup Handybook announced Tuesday it has raised $10 million in funding. The round comes just over a year after the co-founders secured $2 million and made the decision to drop out of Harvard Business School, and was spearheaded by Joel Cutler of General Catalyst Partners, Bob Davis of Highland Capital Partners and David Tisch of BoxGroup.
Handybook allows customers to book pre-screened cleaners or repair professionals, whether online or through their phone, in a minute or less. After launching out of the Summer@Highland program in 2012, Handybook has grown to offer services in eight cities across the United States including Boston, New York, Philadelphia, Washington, D.C., Los Angeles, San Francisco, Miami and Chicago. By the end of the month, the team expects to be in five new markets, spanning from Atlanta to Seattle.
"We're very excited to have closed this latest round of funding," said Handybook Co-founder and CEO Oisin Hanrahan in an email to BostInno. "In addition to adding five new cities by the end of the month, we're also working on growing our existing presence. We've had substantial growth over the past few months and we're hoping to continue that momentum while focusing on serving additional markets across the country."
Along with the $10 million in funding, Handybook announced that the team has released an updated mobile app compatible with all iOS devices that minimizes the booking process to three steps: select your desired service, confirm the time of the service and enter in your email address.
Although Hanrahan declined to disclose internal financial numbers to the New York Times, he did say the average Handybook bill rings in at roughly $85, "with the company taking a cut before paying the service provider." The startup's margin, he acknowledged, was in the "mid-teen percentage points."
Self-described as the "Uber but for household services," Handybook is seeing immense growth — growth hopefully following in the taxi alternative's tracks. Uber raised $275 million in August, only furthering the appeal of on-demand services.
Hanrahan added the Handybook team has been working with their cleaners to make note of any other repair needs, such as a leaky faucet, in customers' homes. They will then send a plumber to fix the faucet at the same time a customer's cleaner typically arrives.
"The goal is that you don't have to think about maintaining your home," Hanrahan said, "because we do it for you."
