SPIN Cycles, a Bengaluru-based dry cleaning and laundry services start-up, plans to raise around $10 million (over Rs 75 crore) to fund its pan-India expansion within the next one to two years, according to a top company official.
The firm, which is currently operating mainly in Bengaluru, is looking to expand in some key cities after 2022, starting with South India.
''We are actively in talks with investors within 12-24 months for pan-India expansion. We have a loyal customer base in Bengaluru and many of our previous customers have taken our franchise for opening new stores. So, we are looking forward to raising funds from several corners,'' SPIN Cycles Co-Founder Narendra Kumar told PTI in an e-mailed interview.
Commenting on the amount of fund the company is planning to raise, he said, ''We are raising $10 million in funds for pan-India expansion within the next 1-2 years.'' So far, the company has been self-funded and operates omnichannel dry-cleaning, laundry and repairs operations in Bengaluru. It has a team of over 200 people and more than 40 stores in the city, Kumar said.
''We have had the opportunity of serving around three lakh customers so far. Our growth has thus far been organic and has come largely through positive word-of-mouth,'' he said.
Commenting on the company's future strategy, he said, ''We have plans for further expansion through our franchise model. We would like to open new stores in South India first and then move further. The COVID-19 pandemic has set back these plans. So, we intend to use the next year to focus on covering lost ground in Bangalore first. Post-2022, we are looking to expand in some key cities with like-minded partners.'' Kumar said.
SPIN Cycles currently processes around half a million garments a year. With added stores and plans for pan-India expansion, it is expecting a rise in turnover after initial investment but that will take some time, he added.
On the impact of the pandemic, he said the services and hospitality sector was the worst hit, while retail also faced a downside.
''However, the introduction of antimicrobial treatment on all our services helped us assuage the infection fears of our customers amid a deadly pandemic.
''With everything from hotels, schools and IT companies opening now, we are looking forward to a return to normalcy. The good news is that pandemic fears instilled an urgent need for 100 per cent clean and hygienic clothes,'' he added.
