Home cleaning startup Handy (https://www.handy.com/
) has come of age as profitability beckons after a treacherous route to success. In a lengthy article on Inc.com, the writer reveals that the company’s success strategy has always been wrought with challenges and a measure of uncertainty. Case in point was the introduction of the online on-boarding process and a plan to hire professional cleaners. While the CEO, Oisin Hanrahan supported the idea wholeheartedly, the company COO, Umang Dua did not embrace the idea when it was first floated in 2014. He argued that potentially successful candidates would find it difficult to complete the application without human assistance.
Hanrahan was categorical that the plan would save the company millions of dollars. When the new system was pre-tested in the Miami and Washington DC markets on January 2015, it proved highly successful to the amazement of the naysayers. The company later received a huge boost in its growth strategy when it closed a $50 million round of Series C venture funding in November of the same year. The funding came at a time when the company chiefs were pondering whether to roll the on-boarding plan in other markets. When the plan was implemented, demand increased phenomenally; outstripping the supply of cleaning pros.
This forced the company to cancel thousands of bookings. The company also had to contend with rising complaints from customers. The ensuing scenario pushed the company to implement a plan of action that encouraged recurring service plans without providing an easy opting out strategy while at the same time shutting down its complain line. With a war chest of $110 million in VC-funds obtained in several rounds of funding, the company made growth and market penetration its key valuation barometer. According Forbes, Hanrahan and Uman Dua cofounded Handy in 2012 at the Harvard Business School, where they studied and lived as roommates.