Webel, an app that brings almost any service (e.g., cleaning, tutors, beauty…) to your doorstep, has recently secured €2.1 million in a seed round led by Trind Ventures, primarily for expansion purposes. The round has also received backing from ZAKA Ventures, Decelera Ventures, Tiburon Ventures, and other well-known business angels, such as Hugo Arévalo, the founder of ThePowerMBA and an investor in Spain’s current/future unicorns like Glovo or Playtomic.
Webel was founded by Nacho, Carlos, Guillermo, and Javier while they were at university. They suddenly realized that its impact was greater than expected: the app went viral when they launched it back in October 2019, gaining popularity among both clients and professionals.
However, the real challenge was not just meeting users’ needs but also building a model that could be profitable and scalable. Many other startups that had tried before struggled with this, primarily due to low client retention caused by platform leakage (users bypassing the platform for future services once they had already connected).
Webel’s approach was simple, as its CEO Nacho Tejero explained: “If you want people to place repeat orders through your platform (and pay a commission), the value created for both parties by doing so – such as ease, speed, and comfort – must exceed the economic value (take rate) you are extracting from the transaction. If not, people will logically opt for alternatives off-platform.”
With this approach, they not only built an app where clients can book their services in just five clicks but also focused on creating value for their supply. To achieve this, they developed SaaS tools (e.g., Calendar, notifications, automated invoices) to help professionals easily manage their services booked through the app. Additionally, they implemented an algorithm that compares a professional’s repeat business with that of their peers, rewarding the most loyal suppliers with higher visibility and lower commissions. This strategy has proven incredibly successful: on average, each customer currently books approximately seven services per year, accounting for more than 75% of their GMV coming from repeat customers.
“We were closely tracking the team of Webel for almost a year. During that time, they really proved the scalability of their marketplace model and expanded from Madrid to Barcelona and Zaragoza with impressive growth numbers,” said Andrej Petrus, Chief Investment Officer at ZAKA VC. “What is even more important for us is the dedication of the team, and we feel that they really know what they are doing.” Webel is the first investment of ZAKA VC in Spain, but they are “excited and looking forward to this platform expanding into other European regions and even outside.”
“Since our investment in the previous round, we have consistently been impressed by the team’s sheer grit and the company’s outstanding performance. They have shown that home services marketplace can thrive by addressing the key issues for both sides of the marketplace. We are excited to continue supporting the team on their ambitious goals,” added Peeter Kompus, Principal at Trind VC.
They started in Madrid but have already expanded into Barcelona and Zaragoza, both of which are experiencing growth three times faster than Madrid did, all while maintaining just one-third of the marketing expenditure. With their successful expansion playbook, their current goal is to bring Webel into the hands of millions of people, one by one. Through this funding round, they aim to deliver over 1 million services per year and expand into new markets like Italy and the UK. Webel have been growing 10x yearly for two consecutive years already, currently delivering over 100,000 services per year.
Read the orginal article: https://www.eu-startups.com/2023/10/madrid-based-marketplace-app-webel-raises-e2-1-million-to-book-services-for-clients-in-five-clicks/
