Just Laundry, a local on-demand laundry service app that connects busy people with trusted laundry services, is seeking to raise R7.2 million by selling 40% of its shares to its customers.
Just Laundry is the easiest way to get your laundry done.
It ensures your laundry is done and delivered at the tap of a button.
Just Laundry picks up your dirty laundry, and returns them clean, ironed, and folded within 48 hours.
The startup founded by serial entrepreneur Malesela Thubakgale is currently operating from Gauteng only and now planning to expand nationally.
The total cost of the expansion is R7,2million.
The beauty is that Thubakgale and team want their customers to own this growth, through a novel way of crowdfunding.
Thubakgale has turned to The People’s Fund, co-founded by Luyanda Jafta, to crowdsource the expansion capital.
How the crowdsourcing campaign works is that people can buy a coupon to use their service from as little as R100 on their campaign on The People’s Fund. For each R100 coupon sold, they will be giving away 1 share of their company, for FREE.
In total 72 000 shares are available to the crowd. The beauty of this model is that the crowd are guaranteed a service, no matter how the company performs. The share incentive scheme is primarily to entice customers to commit to long term usage of the service. These in total make up 36% of the company. The People’s Fund will take 4% carry for the shares to administer them.
“This campaign is about making them a national brand, and allowing you, the customer, ownership of this,” said Jafta.
Just Laundry is one of the success stories from The People’s Fund. They got funded R240 000 by the crowd last year and they have started paying back the crowd at 107% of the predicted performance.
“This crowdfunding was used to buy additional machinery to increase capacity. They are a two-year-old company and in the last financial year, through the help from the crowd, managed to almost double their revenue to R1,3 million,” said Jafta.
Jafta added that the expansion is expected to create 32 new jobs across the 8 new franchises across the country and the motto of the campaign is “come change the country with us, one dirty laundry basket at a time!”.
Just Laundry typical charges around R450 for a load of laundry, washed, ironed & folded / hung (picked up and delivered back to you within 48 hours). If you were to have this service done every week of the year it would come to R23 400. The magic of this is that you would be given 234 shares of the company for free!
The campaign has already raised R26,850.00.
Based on our projections, Just Laundry expects that every R100 of contribution to this campaign would have been paid back to the crowd in the next four years in the form of dividends (full breakdown in Prospectus) which will be administered on the Stokfella platform.
All dividends will be paid through the Stokvel.