Living in the commercial city of Lagos, Nigeria is not for the faint of heart. City, to be in possession By about 14 million people, sub-Saharan is the largest in Africa.
And due to traffic congestion and long working hours, most busy professionals find it difficult to cope with the mundane tasks ranging from cooking to cleaning the house..
Although restaurants and home cleaning companies offer options for those who wish to outsource these tasks, the market is still open to providers who can provide better convenience and quality..
eden life, strategic Has raised a $1.4 million seed round to deepen its market share, positioning itself as the go-to platform for home service needs.
UK-based venture capital firm LocalGlobe led the round. Africa-focused VCs Samurai Incubate, Future Africa, Village Global, Rising Tide Africa and Enza Capital Participate.
Nadyar Engei, Prosper Otemuiwa and Silm Momoh founded Eden Life in 2019. The platform allows customers to schedule three household services – food, laundry and cleaning – through a mobile application.
When the founder, ex-Andelon (a term used to describe previous Andela employees), launched the home service app two years ago, it raised a few eyebrows.. At the time, the founders were rapidly starting ventures into fintech, e-commerce, and logistics, so it was surprising to see that Anegi and his co-founders choose to tackle a location that many thought was a must-see in Nigeria. The technology may not be profitable for the company.
“The reason for this was personal to us,” Engi, the startup’s CEO and co-founder of Unicorn Andela, said in an interview. The founders started talking about the concept of home services right now When the idea of leaving Nigerians en masse in search of greener pastures was taking shape.
Enegesi may be related to why people were desperate to relocate. Comparing his previous stay in Lagos to Toronto, the CEO observed that his quality of life had taken a massive hit in several cities. reports Described as one of the worst places to live in the world.
Although prevailing stressors such as inadequate electricity and bad roads are out of reach for citizens, the founders felt that providing home services such as food delivery and laundry was within reach and would improve the quality of life for some professionals in the city..
After raising a pre-seed round of $600,000 to family and friends, Eden Life launched to target Millennials and Gen Zs Joe Leading busy lives, especially in the tech sector who work as executives, developers and freelancers.
Customers can subscribe to one or three services and according to the company, people try its food services before others and it’s not hard to see why.
Initially, Eden employed a basic delivery model where it delivered meals selected by customers from a wide range of third party service providers.. But the process soon became challenging for the company. from one quality approach.
“They were right now So many issues around standards. We have learned that many of these small service businesses do not have the equipment or equipment needed for a high level of delivery,” said Aneghi. “We learned that many of them do not have any training for their employees. We’ve learned that they don’t have the right business processes in place to produce the same level of quality every time.”
As of late last year, the company thought it needed to invest in setting and building these standards if it wanted to provide the best experience for its customers.. This was followed by a vertical integration into the food department as Eden started its own kitchen and now prepares its own food, enough Improving the dining experience for customers.
Have access to laundry and house cleaning services Some different, though. For the former, Eden works with laundromats set up in various locations in Lagos and owns a network of freelancers who train quarterly to drive the cleaning end of things.. Then, the logistics company Gokada handles about 75% of the company’s food and laundry deliveries.
How’s the traction for the company? I, for one, am an avid user of Eden’s food service, and much more 600 people use one to three services. An average customer uses two services five times per week.
Across the board, customers pay an average membership of $100 monthly – a fee that can cover a daily meal plan or a weekly cleaning and bi-weekly laundry plan. These plans are overseen by trained professionals called gardeners who constantly communicate with Eden users to provide prompts and accept feedback.
A quick math of the subscriber base and average subscription shows that Eden generates about $60,000 in monthly revenue. However, the CEO declined to comment on a specific figure, saying only that the company generates more revenue than the proposed number.
According to Remus Brett, General Partner at LocalGlobe, Eden’s customer passion and attention to detail, as well as a significant first-mover advantage, stood out to the major investor..
He said that his firm “falls in love with Eden Life’s vision for the future of home services in Africa” and that it “combines this advantage with a core team that has proven experience in building African technology to unmatched levels.” , sets Eden Life on an exciting path.”
Since launching, Eden Life has provided over 60,000 services in Lagos alone. The company has not yet ventured into other markets in Nigeria and will not deploy this funding to that as well. Instead, Eden plans to channel it toward manufacturing its in-house technology, growing its team, and operating centers for food production facilities and distribution (presenting an opportunity to explore the dark kitchen model)..
“Lagos is a tough market, and we have to make sure everything works out,” Engi said. “We have to keep fine-tuning and right now our focus is on making this thing very comfortable here. After that, we’ll start talking about where we expand next. “
Africa is the world’s fastest-growing continent with a growing middle class. And although Eden Life doesn’t plan to move into other markets, for now, there are a few regional players such as home cleaning service Sweepsouth. moving to a west african country.
But Enegesi is not worried; The models are quite different. Eden operates horizontally, combining food, laundry and house cleaning services, while Sweepsouth has a vertical approach with house cleaning.
From a lean model point of view, running a single service and adding others as you scale appears to be a better model than operating three services concurrent. Still, the detailed model has worked perfectly for Eden so far.
“Our strength is operational complexity because solving one of these things will not create the experience we want for our customers,” the CEO said. “It’s important that we build a full-suite home experience for people, and does that mean it can take longer than other things? Sure, but it also means that for people.” It would be hard to compete against us. Like I said, it’s personal, and something like this should exist. And Luckily, We are the ones who get to do it. “
While Eden has a vertical integration strategy to own and manage its entire supply chain and deliver its services without the need for third-party providers, it will also introduce more horizontal products in the coming months..