Loopie, a peer-to-peer laundry startup, has sold its wash and fold business to two companies offering similar services, Charlotte-based HappyNest and San Francisco-based Rinse. Co-founder and CEO John Vincent Lee shared that Loopie is transitioning its customer list in Portland to HappyNest, while the Seattle market and other active Loopie cities are being sold to Rinse, which is already active in 12 markets, including Seattle. Despite selling its wash and fold business, Loopie will retain its IP, software, and branding, maintaining a focus on its core assets.
The company was launched in July 2018, with Lee describing Loopie as the “Uber for laundry.” The app-based laundromat quickly expanded to nine markets across the U.S., facilitating close to $3.5 million in laundry orders since its inception. Loopie had raised $4 million in funding to date, with nearly $1 million coming in 2022 from startup investor Jason Calacanis and the Launch Syndicate. Despite its initial success and funding, challenges with profitability led Loopie to the decision to sell its wash and fold business to focus on ensuring exceptional service for its customers in collaboration with Rinse and HappyNest.
Lee cited difficulties in maintaining profitability and challenges raising the next round of funding post-pandemic as factors influencing the decision to transition Loopie’s customer list to Rinse and HappyNest. This move aligns with Loopie’s commitment to ensuring that customers continue to receive outstanding service for all their laundry and dry cleaning needs. By partnering with Rinse and HappyNest, Loopie aims to leverage the expertise and resources of these established companies to provide exceptional service and expand its reach in the laundry space.
Rinse, a San Francisco-based startup, has been actively expanding its presence in the laundry space, with previous acquisitions including Room Service, FlyCleaners, and ButlerBox. Loopie’s decision to sell its wash and fold business comes after acquiring gig economy job-bidding platform BidBud in March. By selling its wash and fold business to Rinse and HappyNest, Loopie is strategically positioning itself to focus on its core assets while ensuring that its customers continue to receive top-notch service in collaboration with established players in the industry.
The partnership with Rinse and HappyNest allows Loopie to leverage the resources and expertise of these companies to provide exceptional service to its customers. Transitioning its customer list to Rinse and HappyNest also ensures that Loopie’s customers will continue to receive top-quality laundry and dry cleaning services. By focusing on its core assets such as IP, software, and branding, Loopie is able to maintain its commitment to providing excellent service while working with industry leaders to expand its reach in the laundry space.
The decision to sell its wash and fold business to Rinse and HappyNest reflects Loopie’s dedication to its customers and commitment to ensuring exceptional service in the laundry and dry cleaning space. With a focus on its core assets and a strategic partnership with established players in the industry, Loopie is positioning itself for continued success and growth. By collaborating with Rinse and HappyNest, Loopie aims to leverage the expertise and resources of these companies to provide top-notch service and expand its presence in the laundry market.
