Two online, on-demand laundry service companies are to merge.
London-based Laundrapp and Berlin-based Zipjet will together become the UK’s largest on-demand laundry business.
An all share equity deal sees Laundrapp acquire Zipjet through the issuance of new shares and will support the next phase of growth.
The new business has also completed a funding round from existing investors including Hargreave Hale VCT, Toscafund, Henkel, Rocket Internet and minority shareholders.
Collectively the businesses currently process over 150,000 items of washing each month, with a ‘Wash & Fold’ service representing approximately 25 per cent of its custom.
London is the main market for both companies. The transaction gives the combined business critical operational mass, while maintaining two separate brands in the short term.
“Bringing the two businesses together allows us to realise synergies, leveraging our technological advantage and critical mass to better serve customers and partners, and in the process cement our position as the number one player,” said Lorenzo Franzi, CEO of Laundrapp.
Oliver Bedford at Hargreave Hale added: “Bringing together two significant operators within the on-demand laundry industry will help lay the foundations for the next wave of investment into technology and infrastructure. Laundrapp aims to put convenience, choice and value at the centre of its customer proposition and we see this transaction as an important step towards building a sector leading capability.”