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HouseJoy shuts services in 7 cities and will now focus on its beauty segment

On demand services company HouseJoy has shut down operations in seven cities out of the 12 cities it operated in. It also reduced its workforce by 50%, as indicated by the  Economic Times. The company is currently operating in five cities which include Bengaluru, Delhi and NCR, Hyderabad, Mumbai and Chennai. It has shut down operations in smaller cities such as Baroda, Chandigarh, Jaipur, Pune and Surat.

When contacted, a spokesperson declined to comment to MediaNama on the scaling back of operations.

The publication added that the company now has 225 people and has been streamlining its marketing expenses and customer acquisition costs. The company added that it now wants to focus on its beauty segment which accounts for about 30% of its revenues. HouseJoy also seems to be cutting other services which are not profitable. Currently, the app does not list services such as fitness and drivers. It’s worth remembering that HouseJoy had bought Bangalore-based Orobind and the acquisition was supposed to bolster their fitness offering. 

Now the app only lists services such as plumbing, electrical, home cleaning, beauty, computer repair, pest control, laundry, carpentry, appliances and painting.

In December 2015,  HouseJoy had raised Rs 150 crore (~$22.4 million) in a series B round of funding led by Amazon, with participation from new Vertex Ventures, Ru-Net Technology Partners and Qualcomm. Post the funding, the company had acquired Mywash, a laundry service. In June 2015, the company raised $4 million in a Series A round of funding from Matrix Partners.

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Competition in the space

In the home services marketplace, Housejoy competes with:

– Accel Partners and SAIF Partners-backed UrbanClap. Earlier this month, UrbanClap raised $3 million in venture debt funding from Trifecta Capital.

– For beauty services, it will compete against Quikr’s AtHomeDiva. It has acquired a number of other smaller players including StayGlad, Salosa and Zapluk. Earlier in the day, Quikr also acquired Zimmber. More details on the same to follow.

– Paytm was reportedly supposed to enter the home services category with its acquisition of Near.in.

– There’s also Mumbai-based Timesaverz which raised Series A funding worth $2.2 million from Unilazer Ventures.

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