Loopie, a peer-to-peer laundry startup, has sold its wash and fold business to two companies that offer similar services. Co-founder and CEO John Vincent Lee announced the transition, with Loopie’s customer list in Portland being transferred to HappyNest in Charlotte, North Carolina, and the Seattle market and other active cities being sold to Rinse, a San Francisco-based startup. Despite selling the business, Loopie is retaining its intellectual property, software, and branding. The company was launched in July 2018 and was often referred to as the “Uber for laundry.”
Since its inception, Loopie has facilitated close to $3.5 million in laundry orders and has raised a total of $4 million in funding, including nearly $1 million in 2022 from investor Jason Calacanis and the Launch Syndicate. However, profitability was difficult to maintain for Loopie, and the company was unable to secure its next round of funding after the pandemic, hindering its ability to continue growing in the laundry space. The decision to transition the customer list to Rinse and HappyNest was made in order to ensure that customers would continue to receive exceptional service for all their laundry and dry cleaning needs.
Rinse, which is based in San Francisco, has already acquired other laundry businesses in the past, including Room Service, FlyCleaners, and ButlerBox. Loopie, on the other hand, acquired the gig economy job-bidding platform BidBud in March. The laundry industry has seen significant consolidation in recent years, with larger companies acquiring smaller startups to strengthen their market presence. The sale of Loopie’s wash and fold business to Rinse and HappyNest is part of this trend of consolidation within the industry.
As Loopie transitions its customer list to Rinse and HappyNest, customers can expect to continue receiving high-quality laundry and dry cleaning services. Both Rinse and HappyNest have established themselves as leaders in the laundry space, providing convenient solutions for customers who may not have the time or desire to do their own laundry. By partnering with these companies, Loopie is ensuring that its customers will be well taken care of moving forward.
The sale of Loopie’s wash and fold business marks the end of an era for the company, which had made a significant impact in the laundry industry since its launch in 2018. Despite facing challenges in maintaining profitability, Loopie was able to facilitate millions of dollars in laundry orders and attract funding from prominent investors. By transitioning its customer list to Rinse and HappyNest, Loopie is taking steps to ensure that its customers will continue to receive exceptional service in the future, while focusing on retaining its core intellectual property and software.
