Cleanly and NextCleaners Merge to Create the Nation's Largest Eco-Friendly Clothing Care Provider
Together, the two companies will be known as By Next
NEW YORK, March 10, 2020 (Newswire.com) - Cleanly and Next Cleaners, New York City’s two largest dry cleaning and laundry service providers, today announced the completion of their merger. The combined company will leverage Cleanly’s proven and scalable technology as well as Next’s physical platforms to expand their combined market share in the New York Metro Area and nationwide. As a result of the merger, the combined company will be the largest technology-enabled, eco-friendly clothing care provider in the U.S. and turn EBITDA positive.
“Over the past two years, I’ve admired the innovation that Tom Harari, Itay Forer and the rest of the Cleanly team have brought to the marketplace,” said Kam Saifi, CEO of Next Cleaners. “We share a common vision and have the right team synergies, scalable technology and the physical infrastructure to support our growth. These are the fundamental factors to unify our forces to build a sustainable growth company.”
Cleanly, founded in 2014, has raised over $15M from institutional and angel investors. By focusing on customer experience and building density in one market before expanding, Cleanly has become a model for how to profitably scale last-mile delivery. NextCleaners, which was founded in 2011, has raised over $10M in equity and debt capital and has grown to be one of New York City’s largest offline brick-and-mortar cleaners, with over 15 retail stores and many marquis business clients throughout the city, by focusing on high-quality service as one of the only environmentally-friendly cleaners licensed to use Green Earth cleaning technology.
“Our capital-efficient approach and emphasis on unit economics have enabled us to not only remain successful but also to become profitable while a host of other on-demand companies have come and gone,” said Tom Harari, Co-Founder and CEO of Cleanly. “Our vision has always been bigger than just clothing care. It’s about reducing stress and maximizing time savings for our customers by removing their most burdensome chores.”
Upon closing, Kam Saifi, the President and current CEO of Next Cleaners, will assume the CEO position of the combined company. Tom Harari will remain committed to the success of the combined company as Executive Chairman.
“Over the years we have been working with Next and have observed and agree with the business fundamentals and strategy,” said Michael Fanger, President of Eastern Funding, a leading specialty finance company subsidiary of a large regional bank in the laundromat and dry cleaning space. “The clothing care industry has been experiencing many changes and consolidation in recent years. The merger of Next and Cleanly will enable the new company to grow a profitable business. We look forward to supporting them on their journey.”
Source: By Next