How Does Laundry Software Make $60M a Year?

Through an introduction, signed a 73-location New York laundry operator as the first customer, against the usual 'don't sign the whale first' advice. The operator gave full access to a store and its entire G&A so the team could learn what mattered. Reasoning: in this vertical a 73-store and a 1-store operator run stores the same way, the big one just has the problems compounded, and an enterprise first customer is invested in your success.

After seed investors said to prove he could sell another 5-10 customers himself, the founder physically walked into stores, filled in the contact forms on operators' websites, and phoned stores. The opener for stores without delivery: a first-of-its-kind gig-economy integration (Uber, DoorDash) giving two-way pickup/delivery logistics, so for a nominal fee they could add delivery revenue with no labor or CapEx. Once in, pitched the hardware and point of sale.

Built as an all-in-one from the start: POS software first (easier to iterate, deploy, hire for, cheaper), then custom on-machine hardware (own enclosure, EMV modules, screen), not a generic Android tablet. Hardware is sold as a one-time, good-margin product with standalone value to the operator, and every device carries SaaS and payments, turning a one-time hit into long-tail recurring revenue. Focus on net dollar retention (more products per operator) over location count.

Commercialized in-house hardware in late 2022/early 2023; it made a couple million dollars in sales but was costly and hard. In 2024 bought a hardware business to derisk and speed up hardware execution.

Raised while above 20% EBITDA margin rather than out of need. Set the target valuation and terms up front from a share-price model (monthly to 2031) and the buyer profiles that could pay 4-6x the entry price later; higher term sheets did not sway them. Picked the lead (Sumeru) on partnership fit after 3-4 dinners (~12 hours) before the process. Goal: avoid a price that forces an IPO or leaves founders, employees and common holders underwater.

Structured the Series C as a $110M close (itself including some secondaries) plus a $30M employee tender to give some employees liquidity.

Keeps headcount low (~80 at end of 2025 on $60M revenue) and pushes people to grow with the business. Internal benchmark is at least $1M revenue per headcount. Culture treats failure as a chance to grow.