Laundrapp and Zipjet, the on-demand laundry services based in London and Berlin respectively, have completed a merger.
The all share equity deal sees Laundrapp acquire Zipjet through the issuance of new shares and will support the next phase of growth.
Further to the deal, the combined business has completed a funding round from existing investors Toscafund, Hargreave Hale VCT, Henkel, Rocket Internet and further minority shareholders.
Together, the businesses currently process over 150,000 items of washing each month, with the Wash & Fold service representing approximately 25% of volumes.
London is currently the main market for both companies, and this transaction gives the combined business critical operational mass, whilst maintaining two separate brands in the short term.
The service operations, including the processing of the laundry as well as the transportation, will be combined into one in the coming weeks, which will enable the company to further optimize the last mile logistics and product quality.
Founded in 2014, both Laundrapp and Zipjet have become the largest on-demand laundry business. Based in Berlin, Paris and London, they also offer laundry and dry-cleaning services in 100 towns and cities across the UK.
The merged company will be led by Lorenzo Franzi, CEO.