Bengaluru-based startup rolls out four-hour Sprint service in Gurugram, targets five cities in two years and India’s top ten markets by 2029
Bengaluru-based LaundryMate is taking a capital-intensive approach to scaling India’s on-demand laundry market, investing in city-specific infrastructure rather than pursuing the asset-light model favoured by many consumer-service startups. With operations in Bengaluru and now Gurugram, the company is preparing for rapid expansion, targeting five cities in two years and aiming to cover India’s top 10 cities by 2029.
Speaking to BW Retail World, Abhinay Choudhari, Co-founder and CEO of LaundryMate, explained the rationale behind Gurugram as the first city to receive a full rollout of the four-hour “Sprint” express service.
“Gurugram is the first city where we have the Sprint service available across the city from day one. In Bengaluru, it’s only available within a five-kilometre radius of one store,” he said. “Across Gurugram, all customers are covered, whereas in Bengaluru only customers within a limited radius were served.”
He added, “We believe Gurugram will scale up for our service much faster than Bengaluru.”
Unlike many startups that minimise capital expenditure through asset-light models, LaundryMate has built full-scale, city-specific facilities. The Bengaluru facility alone cost roughly Rs 30 crore, while the Gurugram unit in Sector 75 — flagged off last month for LaundryMate and this week for Sprint, handles both Sprint and full-service operations.
“Everything is asset-heavy. We don’t believe in asset-light. Efficient operations in this category are not possible without control over assets,” Choudhari said. He likened the model to a manufacturing plant: “It’s like building a factory that can make one million cars, but initially producing only 100,000. As utilisation increases, efficiencies improve and the fixed cost per order declines.”
Expansion Roadmap And Funding
LaundryMate plans to enter Delhi, Noida and Hyderabad over the next two years, followed by expansion into Mumbai, Chennai, Pune and Ahmedabad to complete its presence in the top 10 markets. Entry into Tier 2 cities, including Indore, Vadodara, Goa and Kochi, is planned between 2029 and 2033.
“Currently, we are in two cities, Bengaluru and Gurugram. In the next two years, we will launch three more Tier 1 cities and then expand to the top 10 by 2029. Tier 2 cities will follow between 2029 and 2033,” Choudhari said.
To fund this growth, the company is in discussions to raise a Series A round of USD 5–10 million. “In the next six months, we will raise additional capital to expand into each city,” he added. LaundryMate previously raised USD 6 million in a pre-Series A round in 2023.
Premium Pricing, Better Economics
The Sprint model is positioned as a premium service but does not cannibalise order value. “In services, there is no MRP. We can charge a premium for faster turnaround, and the number of items per order is not significantly lower. So the average order value of Sprint and the standard service is similar. The unit economics of this model are actually better than the 24-hour service,”. Choudhari explained.
Gurugram is expected to process 5,000 garments daily within six months, including 250 Sprint orders, generating around Rs 1 crore in monthly revenue. For context, Bengaluru’s facility has a capacity of 24,000 garments per day, with actual throughput currently averaging 10,000–12,000 items daily.
On profitability, Choudhari said each city is expected to break even within three years of launch, reflecting the scale-driven economics of the asset-heavy model. “Every city will break even within three years of launch. Once multiple cities reach utilisation thresholds, the company as a whole will be profitable,” he added.
Retention, Subscription And Habit Formation
For the Bengaluru branch, 30 per cent of customers are on subscription plans, and 80–85 per cent of monthly orders come from repeat users, indicating strong habit formation. Sprint, while gaining traction, is not expected to replace the 24-hour service entirely. Certain items, such as curtains, cannot be processed within four hours, he noted.
“Sprint will drive incremental usage over and above the 24-hour service,” Choudhari said. He emphasised that LaundryMate focuses on everyday laundry needs rather than niche or occasional use cases, positioning itself as a time-saving solution for urban households.
Sustainability And Tech Backbone
Choudhari also highlighted sustainability initiatives, including the use of electric vehicles for delivery and the recycling of paper packaging and hangers. These measures, he said, do not significantly increase costs but enhance customer trust and brand perception.
“It gives customers peace of mind that the company is conscious about resource use. Water is critical, and we conserve a significant amount that would otherwise be wasted at home.” The startup operates a fully digitised supply chain, tracking every item at each stage of the laundry process. “We know which particular item was ironed and by whom. Every activity is digitally recorded, which improves productivity, accountability and customer trust,” he said.
