UrbanClap acquires hyperlocal app GoodService

Photo credit: Pixabay.

You may soon be able to book services on UrbanClap with a simple chatroom message, as the hyperlocal startup has acquired Delhi-based concierge startup GoodService. It is currently working on merging the operations.

Two sources in the company confirmed the development. However, UrbanClap declined to comment and an email sent to GoodService co-founder Ruchir Jain remains unanswered at the time of publishing. The acquisition is an all-cash deal, according to the sources.

As for GoodService, the mobile app has vanished from Apple and Android app stores, while its website redirects users to UrbanClap and says that the services are verified by it. The Facebook page of the startup also seems to be out of service, with the last post published in early May. The existing users of the app have also not got any response on their service requests since May.

GoodService, founded in 2014 by Vipul Aggarwal, a Stanford Graduate and Ruchir Jain, an IIM-Ahmedabad alumnus, used to offer local services such as beauty professionals and cooking classes. The users could order these by initiating a chat with the GoodService app agents, much like contacting a friend for a favor. The company had raised US$1.6 million in funding from Sequoia Capital in June 2015.

The GoodService platform can prove beneficial for UrbanClap, which has been working on an algorithm that asks a series of questions on each category, to make customization of service offerings more accurate. A chat service will allow the company a deeper insight into consumer behavior. UrbanClap is also looking to add features like a payment gateway, training, and webinars for suppliers.

This is UrbanClap’s second acquisition within this year, after the mobile-based services marketplace acquired after sales service platform HandyHome in an equity swap deal. Mumbai-based HandyHome allows users to book brand-authorized repairs and other services for electronic appliances online.

More acquisitions likely

UrbanClap founders Abhiraj Bhal, Varun Khaitan, and Raghav Chandra.

UrbanClap, which raised an undisclosed amount in funding from Ratan Tata in December, is currently scouting for acquisitions to expand inorganically. “We have enough cash, and we will look at some value adding acquisitions,” a company source said. The funding from Ratan Tata came just a month after it raised US$25 million from Bessemer Venture Partners and existing investors Accel Partners and Saif Partners.

UrbanClap co-founder Abhiraj Bhal had earlier indicated that the company will look for acquisitions in the on-demand laundry space also. With several online marketplaces in the local and home services space available, such as Taskbob, LocalOye, and Housejoy, UrbanClap’s acquisition spree may treble this year. With the tightening of the market and the funding coming in, this category has seen some players falter. For instance, LocalOye laid off employees to cut costs, paving way for consolidation. Recently, personal chat assistant platform Helpchat also fired close to 100 employees after it had shut the chat-wing of its business.

UrbanClap also plans to add new service segments, and is currently conducting pilot runs for nurse services in Delhi. Nanny services and on-demand laundry are also on the shortlist.