Why we invested in Webel?
Webel, Decelera Alumni 2023, the innovative platform that brings a wide array of services directly to your doorstep, has successfully secured a substantial 2.1 million euro in funding. This Madrid-based startup has grand aspirations of expanding its footprint and venturing into international markets.
The Unmet Needs in the Home Services Market
The story of Webel’s genesis is one that underscores the startup’s keen understanding of emerging trends and unmet needs. In 2018, Nacho Tejero, Carlos Estévez, Javier Ginés and Guillermo Urquijo, the visionary founders of Webel, were wrapping up their studies and noticed a significant shift taking place. The home was rapidly becoming the hub for a wide range of services, from shopping to food delivery and even floral arrangements. Yet, curiously, there was a noticeable lack of apps catering to the needs of individuals looking to access a diverse spectrum of home services, encompassing both traditional housekeeping and innovative at-home beauty services.
At its core, Webel’s business philosophy is rooted in thinking big and thinking long-term. The startup’s mission is to digitally transform a traditional sector and emerge as the dominant force, impacting the lives of millions. Their commitment to this enduring vision is unwavering, as the founders assert their intent to establish a lasting presence in the sector.
Mapping Out Expansion: From Local to Global
With this infusion of capital, Webel is poised to embark on a journey of national and international expansion. Presently, the platform operates in Madrid, Barcelona, and Zaragoza. They are actively exploring strategic entry points into other Spanish cities, such as Valencia, Sevilla, and Málaga. Beyond Spain’s borders, Webel harbors a global vision, with plans to set foot in the Italian market. They are also exploring the possibility of extending their reach to new destinations, possibly venturing into Mexico or the United Kingdom.
Webel’s strategic positioning and wide-ranging services, including house cleaning, handyman services, ironing, manicures, massages, and English lessons, make them exceptionally well-suited for international expansion.
Company Goals
Looking ahead, Webel has set ambitious targets for the near term. Their vision includes doubling their current team, growing it to encompass around 30 employees. Additionally, they aim to achieve a monthly revenue of 3 million euros, surpassing the monumental milestone of one million services provided annually.
A particularly exciting development on Webel’s roadmap is the introduction of “Business Profiles.” This feature will empower them to offer B2C services to established brands, enabling these companies to seamlessly leverage the platform, similar to individual users. Moreover, Webel is dedicated to supporting and nurturing professionals within the platform, assisting them in establishing and growing their own businesses within the Webel ecosystem.
Unique Value Proposition
Webel’s value proposition is nothing short of groundbreaking. They offer services at a price point roughly 25% lower than their competitors, providing a substantial cost advantage to professionals operating within the platform. Moreover, Webel’s commission rate is a mere 10%, significantly undercutting the industry standard of 25% to 30%. The startup’s goal is to close the year 2023 with over 100,000 services performed in five Spanish cities, marking a remarkable tenfold increase over the previous year.
Why We Invested in Webel?
At Decelera Ventures, the decision to invest in Webel was underpinned by a confluence of compelling factors:
Innovative Service Model: Webel has introduced an innovative and efficient model for on-demand home services, replete with reduced fixed costs and a strong focus on supply-side incentives.
Vast Market Potential: With a massive 660 million euro market in Spain and a conspicuous absence of dominant players, Webel has the potential to establish itself as a significant industry force.
Exceptional Founding Team: The founders of Webel earned the respect and admiration of Decelera mentors for their boldness and unyielding drive. The Decelera Human lead expressed unwavering confidence in Nacho and Carlos, the 2 founders who joined our 2023 program.
Data-Driven Approach: Webel’s commitment to data-driven decision-making ensures that every move is rooted in technical data and comprehensive metrics.
Impressive Traction: Webel’s remarkable growth, exceeding 20% month-on-month from the prior year, stands as a testament to their achievement of Product Market Fit.
Efficient Client Conversion: Webel excels in client acquisition, with a notable ability for cross-selling. Furthermore, they maintain an attractive LTV/CAC ratio, signifying a highly efficient client acquisition strategy.
Social Impact: Webel’s commitment to social impact is commendable, with over 50% of their professionals hailing from regions at risk of social exclusion. It’s notable that Webel serves as the primary source of revenue for their top 10 workers, many of whom have successfully launched their own service companies within the platform.
In conclusion, Webel represents a unique and highly promising opportunity within the home services sector. Their innovative business model, formidable team, impressive growth trajectory, and unwavering commitment to creating positive social impact have all contributed to our decision at Decelera Ventures to join them on their journey. We eagerly anticipate supporting their expansion and global ambitions as we move forward.
