Investments, News

Amazon in Advanced Talks to Buy a Stake in Housejoy

Amazon is in advanced talks to buy a stake in on-demand home services company Housejoy, which was founded in 2014 by Arjun Kumar and Sunil Goel. As per the deal, Amazon will lead a round of $15-20 million in the Bengaluru-based startup.
(source)

“India has a large home services economy. The next large horizontal marketplace is going to be a services marketplace.” Vikram Vaidyanathan, Matrix Partners(source)

Commenting on the matter, a person related to the deal said, “The company is in talks with 3-4 other investors to form a consortium and the eventual size of the round could be larger”. However, no comments have come from either of the companies on this.

Housejoy is backed by serial entrepreneur couple Krishnan Ganesh and Meena Ganesh, and Matrix Partners which has poured a total of $8 million into the startup. It’s competition includes, LocalOye, UrbanPro, UrbanClap, Taskbob, and Qyk.

The potential deal with Amazon comes even as UrbanClap, is close to raising $25-30 million from Silicon Valley-based investor Bessemer Venture Partners, reports ET.

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This deal demonstrates Amazon’s urge to diversify its platform. This investment could be highly important as Amazon  and Google have both made an entry into the on-demand home services market in the United States, and it could portend heightened interest in the space in India too. It could mean that home services can join the likes of other hot on-demand sectors such as taxi booking, groceries, food delivery in attracting investor attention.

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