Handybook Hoovers Up Exec For “Under $10M” To Sweep The Home Services Market

Justin Kan launched Exec in early 2012 as an on-demand errand service for businesses, but over time, morphed into a cleaning service to focus on its most popular offering. Unable to scale Errands and struggling to find its legs, the startup folded its personal assistant service in September and later dropped prices for home cleanings in each of its nine markets.

Rumors of Execs trials have been swirling for several months now, as the startup found itself paddling upstream and competing against fast-growing services like Homejoy, MyClean and Handybook in an increasingly crowded on-demand cleaning market. Today, those rumors appear to have been confirmed as Exec has opted to join the ranks of a competitor, rather than go it alone. If you cant beat em, join em, as they say.

After what co-founder and CEO Oisin Hanrahan called a competitive bidding process between multiple companies and home services brands, Handybook announced this morning that it had won out, completing an acquisition of Exec that will see the two on-demand home improvement and cleaning brands join forces.

In an equity deal valued at less than $10 million, according to the companies, Exec will continue to operate in its West Coast markets, but under the Handybook brand. Co-founders Justin Kan, Daniel Kan and Amir Ghazvinian will stay on in an advisory role with Justin Kan providing strategic counsel while Handybook co-founders Hanrahan and Umang Dua will continue as the chief officers of the new company.

But, given the competitiveness of the space, why was Handybook able to win the bidding for Exec? Of all the companies in the space, Hanrahan tells us, the chief reason Exec ended up going with Handybook was that it was able to offer the most potential synergies especially in terms of marketshare.

Launched in June of 2012 to help people find better, trustworthy professionals to take care of their household needs, Handybook currently operates its on-demand cleaning and household services in 13 markets across the U.S. However, Handybooks strongest markets have traditionally been on the East Coast and in the Mid-west, owing to the fact that it was founded (and is now headquartered) in New York.

In contrast, while Exec has been operating in nine markets since September, its penetration has been strongest on the West Coast, particularly in Los Angeles and San Francisco. By acquiring Exec, Hanrahan says that Handybook will now be able to bring its services to new communities and grow its footprint on the West Coast, where Exec currently serves the four largest cities in California San Francisco, San Diego, Los Angeles and San Jose.

The acquisition enables Handybook to create a brand with bi-coastal hubs, he says, and leveraging Execs traction in its home territory, will allow Handybook to open its first Los Angeles office in Santa Monica later this year.

With an acquisition price reportedly less than $10 million, its not a big win for Exec, which has raised $3.3 million to date from investors like CrunchFund, SV Angel and Y Combinator. However, if Handybook is able to continue scaling at its current pace and grow into the market leader, the equity the Exec co-founders now have in Handybook could negate any loss incurred over the long run.

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Handybook Hoovers Up Exec For “Under $10M” To Sweep The Home Services Market