In just four months, Helpling, an on-demand home cleaning service headquartered in Berlin, Germany, has significantly increased its investment. After raising $17 million initially, the company has closed a $45 million Series B round to support its rapid expansion, primarily in Germany and other European countries. To date, the service is available in Germany, Austria, France, Sweden, the Netherlands and Canada.
Helpling is speedily moving into new markets. The company offers some services in Canada, but not yet in the United States. A dearth of such services has helped the company make quick inroads. In Europe, 200 companies now exist despite little more than a year’s experience. Even so, although Helpling eclipses competitors such as American start-ups HomeJoy, Handy and Hassle, the number of Helpling customers average only 250 in the cities in which it is available.
Co-founder Benedikt Franke explains some of the figures. They are based on relatively short experience and on the level of investment the company has decided to make in its various sites, he said.
The service steers people who want their homes cleaned to professionals who do such cleaning. Carefully vetting professional cleaners is an important part of the service. Helpling has tested two approaches: A personal interview and a test clean or an online questionnaire and telephone interview. A review of past cleaning experience and background/reference checks are included. Based on results, the company has settled on the latter process. Company officials are well aware that one bad experience could have a negative impact.
The customer’s rating of their service is an important element. And the workers who receive the highest ratings are rewarded.
Franke feels confident that Helpling is just a bellwether concept in what will be an expanding market, both in Europe and in the United States as people increasingly turn to online sources to procure services.