Laundrygo raises 17 billion won in Series B funding

Image credit: Laundrygo

Clothing Care Company, which operates Laundrygo, a contactless mobile laundry service, announced that it has raised 17 billion won in Series B funding.

New investors Korea Investment Partners, Aju IB Investment, KT Investment, and Samsung Venture Investment, along with DS Asset Management, joined the round. Existing investors Altos Ventures and Hana Ventures also participated. Just over a year after launching its service, Laundrygo secured Series B funding nearly three times the size of its 6.5 billion won Series A round, raised in May last year, as investors recognized its technology and business potential.

Since its launch in March last year, Laundrygo has introduced several innovations to Korea’s laundry market: the country’s first contactless mobile laundry service, a smart factory built to global standards, an all-in-one service combining dry cleaning and everyday laundry, 24-hour delivery, and subscription plans bundling a range of products. Recognized as a leading contactless business model in Korea even amid the COVID-19 crisis, the service grew by an average of 30% per month from launch through April this year.

Using its proprietary smart laundry collection box, the Laundrette, Laundrygo handles ordering, cleaning, and delivery contactlessly in a single day, eliminating the need to visit a laundromat. Its all-in-one service covers both dry cleaning and wash-and-fold laundry, tailored to the lifestyles of busy people.

Laundrygo’s smart factory reduces distribution markups and production costs, enabling it to offer high-quality laundry services at reasonable prices. The company also offers services at affordable rates through a monthly subscription model.

“Korea’s laundry market is currently worth about 4.5 trillion won, and 99% of it is offline-based. We expect a rapid shift to mobile laundry services, which offer greater convenience,” said Kim Geun-ho, a director at Korea Investment Partners, which led the investment. “We decided to invest because Laundrygo has consistently worked to build its own smart factory and upgrade its systems, and we’re confident it will lead this market.”

“With this investment, we plan to focus on improving the customer experience by enhancing laundry quality through upgrades to our smart factory and contactless laundry system, and by improving the app’s usability. We’ll also work to perfect the world’s first automated laundry dispatch system, which is under development,” said Cho Seong-woo, CEO of Clothing Care Company. “We’ll also expand our service area and work to provide a range of services that make things more convenient for users.”

Laundrygo currently operates across Seoul and in Ilsan and Pangyo, Gyeonggi Province. It has grown rapidly over the past year, processing more than 700,000 dry-cleaning items, 2 million liters of wash-and-fold laundry, and 30,000 bedding items.