South Africa’s SweepSouth Shuts Down Nigeria Operations 4 Months After Launch

Aisha Pandor, co-founder and CEO of SweepSouth

South African home cleaning service startup has announced it has shut down its Nigerian subsidiary, SweepSouth Nigeria, effective November 25th, 2022. The decision is coming barely 4 months after the startup was launched . 

“Due to the unfavourable global macroeconomic environment, the home service industry continues to be hit hard. This has meant that our business cannot sustainably operate due to the economic pressures being faced at the moment. This has been a difficult decision to make considering our passion to service the Nigerian market. All bookings scheduled to place between now and November 25th will remain in place,” the startup announced in a statement. 

Aisha Pandor, co-founder and CEO of SweepSouth
Aisha Pandor, co-founder and CEO of SweepSouth

The statement also stated that the startup would also be cancelling all its bookings scheduled to take place after November 25th, 2022. 

Read also South African Online Home Services Platform SweepSouth Raises $11M In New Investment Round

“Customers will receive full refunds for any bookings that have been paid for in advance and full refunds for Sweepcred balance in customer accounts. We encourage our customers to continue supporting our hardworking, vetted SweepStars, by booking them directly,” it added. 

The company also added that it will continue to provide its services in Egypt and South Africa, even as it stated that it is still open to re-entry in Nigeria in the future. 

Read also Cellulant Partners Solv Kenya on Digital Payment Services.

A Look At What The Startup Does

Founded in 2014 by Aisha Pandor and Alen Ribic, SweepSouth is a South Africa-based online platform for booking, managing and paying for home cleaning. The startup has also expanded its offering to gardening and pool cleaning, heavy lifting, fixing and maintenance, and most recently, to commercial sanitation.

SweepSouth Nigeria SweepSouth Nigeria

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. 
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh

Airbnb Is Back To Life In South Africa, In A New Partnership Deal With Fast-Growing Cleaning Startup SweepSouth

The coast is now clear, in South Africa, for the international home sharing platform, Airbnb, after government lifted its ban on the company on Monday— two months after other accommodation establishments were allowed to operate. With the renewed start, the home sharing platform has gone ahead to onboard local cleaning startups SweepSouth and Propaclean, in new partnership deals, to train hosts and cleaners in Airbnb’s cleaning standards.

Aisha Pandor, SweepSouth co-founder, and CEO
Aisha Pandor, SweepSouth co-founder, and CEO

“The long-awaited reopening of South Africa’s hospitality industry comes with unique challenges that SweepSouth has been preparing for months. In addition to providing dedicated sanitisation and hospitality protocols training for SweepStars, our online platform has been upgraded to make booking a dedicated option for Airbnb hosts. Guests can now make Airbnb bookings, safe in the knowledge that accommodation serviced by our SweepStars meets with the highest international hospitality cleaning best practice standards,” said Aisha Pandor, SweepSouth co-founder, and CEO.

Here Is What You Need To Know

  • SweepSouth ‘s new partnership with Airbnb aims to encourage locals’ appetite for domestic travel and third-party accommodation by ensuring that hosts meet the standards of Airbnb’s enhanced cleaning protocols for hosts in South Africa. 
  • According to government’s new rules, only 50% of the “available floor space” of accommodation establishments may be used, with guests observing a distance of at least one and half metres from each other.
  • By the terms of Airbnb’s new protocol, hosts will have to wait 24 hours between bookings to prevent the spread of the coronavirus.
  • The new “cleaning protocol” — standardised guidelines for cleaning and sanitisation at Airbnb establishments — also include ventilating rooms, washing all linens at the highest heat settings, spraying chemical disinfectant on doorknobs and light switches, and providing guests with hand sanitiser, disposable paper towels, disposable gloves, disinfectant spray or wipes, and extra hand soap.
  • Hosts who get an average “cleanliness rating” from guests of more than four stars can choose to commit to the cleaning protocol and get a special highlight on their listing page. “This will let guests know that you’ve agreed to follow a higher standard for cleaning,” according to Airnbnb. Hosts with an average cleanliness rating of less than 4 stars can commit to the protocol, but won’t get the special highlight on their listing until they demonstrate an improvement in their cleanliness ratings.
  • These measures have been awarded a Safe Travels seal by the World Trade and Tourism Council. 
  • The new partnership will not only work to lessen the stress of those who want to travel locally while staying at an Airbnb but it will also offer additional work for SweepSouth ‘s employees.
  • In April, while the pandemic was still breaking, SweepSouth established the COVID-19 SweepStar fund to provide monetary support for SweepStars, many of whom are the sole providers for their families. 

“The fund, which was aided by an R6 000 000 contribution from the Michael & Susan Dell Foundation provided vital short-term support for SweepStars, raising just short of R12-million to date. However, the international-standard hospitality training which SweepStars are now being empowered with not only expands their independent employment prospects across an array of hospitality sectors but also strengthens their ability to contribute to South Africa’s economy. They are providing Airbnb and the hospitality sector at large with an indispensable cleaning resource,” Pandor explained. 

Read also: South African Startup SweepSouth Secures Funding From Futuregrowth

A Look At What SweepSouth Does

Founded in 2014 by Aisha Pandor and Alen Ribic, SweepSouth is a South Africa-based online platform for booking, managing and paying for home cleaning. The startup has also expanded its offering to gardening and pool cleaning, heavy lifting, fixing and maintenance, and most recently, to commercial sanitation.

SweepSouth’s services are currently available in South Africa’s four major metropolitan areas: Cape Town, Johannesburg, Pretoria and Durban.

“We went from the two of us working around our dining-room table — both of us sitting all day and working on this business plan — to going from a few domestic workers we were interviewing ourselves,” Pandor said, “ and even went from cleaning houses ourselves to having 11,000 domestic workers on the platform”.

In 2018, the startup reportedly reached $7 million (R100 million) in revenues.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer

South African Startup SweepSouth Secures Funding From Futuregrowth

South Africa’s “Uber of cleaning services” SweepSouth has secured an undisclosed amount of funding from asset manager Futuregrowth, making the investment firm SweepSouth’s newest investor, after the startup raised $2 million from Africa’s largest company Naspers, and another $3.3m from Michael & Susan Dell Foundation, musician and venture capitalist Black Coffee and from existing investors Naspers Foundry, Smollan, Vumela, CRE VC (previously Africa Angels Network) in 2019.

Aisha Pandor, co-founder and CEO of SweepSouth
Aisha Pandor, co-founder and CEO of SweepSouth

“We are uplifted each time we see our SweepStars referred to in this way, as it represents how a positive idea can take shape and can change the negative language that has been so deeply entrenched,” Aisha Pandor, co-founder and CEO of SweepSouth said. 

Here Is What You Need To Know

  • The latest investment from Futuregrowth adds to Futuregrowth’s portfolio of innovative, early-stage growth companies.
  • The investment would further help SweepSouth achieve its strategic goals going forward.
  • Earlier this year Futuregrowth invested in Lifecheq, a digitised private wealth management business. In late 2018, the asset manager also made another venture capital investment in Yoco, the innovative technology-driven point-of-sale payments provider

Why The Investor Invested

SweepSouth’s latest investment appears probably easier given that the startup had previously been backed by investors such as Naspers, and CRE VC. 

“SweepSouth is an early-stage business disruptor that, instead of solving a Silicon Valley problem, is solving South African-specific problems. The company has taken a large segment of the informal sector, which is one of the biggest employers in South Africa, and formalised it, giving people protection and security in their working environments,” Amrish Narrandes, head of unlisted equity transactions at Futuregrowth, said. 

Futuregrowth makes investments from its Futuregrowth Development Equity Fund, a venture capital fund devoted to supporting disruptive businesses and propositions that show strong high growth potential. .

“SweepSouth has played a material role in empowering previously vulnerable informal workers by giving them a voice and the ability to control their destiny because they have flexibility and control over their own time,” Amrish added. 

Read also: COVID-19: What SweepSouth Is Teaching Other African Startups About Workers’ Welfare

A Look At What The Startup Does

Founded in 2014 by Aisha Pandor and Alen Ribic, SweepSouth is a South Africa-based online platform for booking, managing and paying for home cleaning. The startup has also expanded its offering to gardening and pool cleaning, heavy lifting, fixing and maintenance, and most recently, to commercial sanitation.

SweepSouth’s services are currently available in South Africa’s four major metropolitan areas: Cape Town, Johannesburg, Pretoria and Durban. 

“We went from the two of us working around our dining-room table — both of us sitting all day and working on this business plan — to going from a few domestic workers we were interviewing ourselves,” Pandor said, “ and even went from cleaning houses ourselves to having 11,000 domestic workers on the platform”.

In 2018, the startup reportedly reached $7 million (R100 million) in revenues.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning write

COVID-19: What SweepSouth Is Teaching Other African Startups About Workers’ Welfare

Aisha Pandor, co-founder and CEO of SweepSouth

SweepSouth, the South African Uber of cleaning services is not one startup that issues fancy and bogus press statement highlighting merely administrative actions taken  in response to  the global coronavirus surge. The startup has launched a fund to help provide domestic workers within its employ with food and other basic essentials during the lockdown in South Africa. 

Aisha Pandor, co-founder and CEO of SweepSouth
Aisha Pandor, co-founder and CEO of SweepSouth

“Like everyone else, domestic workers in South Africa rely on their income to put food on the table for them and their dependents. But of course, the cost of basic necessities such as electricity and other utility expenses all add up,” says Aisha Pandor, co-founder and CEO of SweepSouth. 

“Our research suggests that most domestic workers (over 70%) are single mothers and that many (over 80%) are primary breadwinners. Our annual survey shows that domestic workers spend on average R1,100 on monthly groceries.”

“If these workers aren’t paid during the lockdown, they face worsening poverty and mounting debt. We simply cannot allow SweepStars and their children to be left to this fate.”

Here Is More You Need To Know

  • Aisha Pandor says at least R4 million a month will be needed to ensure that SweepStars and their families are able to eat and at least meet day-to-day living costs during a lockdown.
  • SweepSouth has seeded the fund which aims to provide food and necessities to active SweepStars (those who use the platform) and their families and is also negotiating with corporate backers to contribute.

“We are stepping into the breach to help these vulnerable families in retaining their dignity during a testing time for the whole nation, and we appeal to both the public and corporate entities to support us in doing this,” Pandor added.

Read also:South African Fleet Management Startup Payment24 Secures Funding From Africa’s Top Bank 

  • The launch of the fund has been aided by a R6m contribution from the Michael & Susan Dell Foundation, which invested in SweepSouth in 2019. The aim of the investment into SweepSouth was to promote better family economic stability in South Africa by backing an organisation providing broad access to work opportunities. This initial injection of funds will enable SweepStars to receive weekly financial support in the form of top-ups of between R150 and R450 during the national lockdown period.
  • Building on this injection of funds, Pandor insists that SweepSouth’s ambitions extend significantly further.

“Our aim is to raise up to R12m in order to contribute to SweepStars’ living costs for a three-month period. Their financial difficulties will extend far beyond the 21-day lockdown, so it’s important to mitigate this as much as possible. We’re calling on all businesses and able individuals across South Africa to join us urgently in supporting these domestic workers.”

  • Pandor says their platform is negotiating with retailers to secure bulk buying discounts on basic food staples to maximise the buying power of the funds they have available to them. “The issues run deeper than only being able to provide food for these families. We are also gravely concerned about the lack of clean running water and adequate hygiene infrastructure in some communities in which domestic workers live, further posing risk and increasing susceptibility to Covid-19, so it is incumbent on the wider community to support in any way we can.”
  • The SweepSouth platform is geared to allow customers to continue contributing to domestic workers during the lockdown. The response has been positive, with over 40% of customers choosing to continue to provide support to SweepStars.
  • As a result, SweepSouth customers have contributed in excess of R100,000 so far. Pandor thanks SweepSouth customers for their generosity and calls on them, as well as all private employers of domestic workers, to continue helping to support those in our society who are the most economically vulnerable.

“Any member of the public who is financially able to assist in keeping these families healthy and fed during this time of national crisis is asked to contribute to the fund via our app. Moreover, if you employ a domestic worker privately, please do your bit and continue to pay them during lockdown — you will have the gratitude of thousands.”

 

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer.

Cape Town startup SweepSouth Raises $3.3 mn In New Funding Round

Three months after raising $2 million from Africa’s largest company Naspers, South African ‘Uber of Cleaning Services’ SweepSouth has raised more than R50-million ($3.3mn) in its latest funding round.

“We see ourselves as an emerging market-focused platform that aims to serve the many professionals who don’t have the time to source the services we provide, whilst also creating meaningful employment opportunities, ” Aisha Pandor, SweepSouth’s co-founder was quoted as saying. 

Here Is The Deal

  • This investment round was led by Michael & Susan Dell Foundation which invested $1-million (R14.5-million) in the company.
  • The startup has also disclosed in a statement that existing investors Naspers Foundry, Smollan, Vumela, CRE VC (previously Africa Angels Network) and musician and venture capitalist Black Coffee had also participated in the round.
  • SweepSouth also said early investors Newtown Partners had exited the startup in the round with more than 10x return on their investments.
  • The round is likely one of the highest raised in South Africa by a startup outside the fintech sector. It follows an announcement by Naspers in June that its venture capital (VC) fund Naspers Foundry had invested R30-million in the company (see this story).

Aisha Pandor, SweepSouth’s co-founder said the latest round of investment will be instrumental in achieving the startup’s strategic goals going forward.

“In addition to expanding the markets we operate in, in South Africa and elsewhere on the continent, we are also looking forward to a formal announcement regarding our new platform, SweepSouth Connect, which offers services like handymen, plumbers, electricians, locksmiths, carpet cleaners and nannies, as well as the growth of our online SweepSouth Shop which sells a range of home products,” said Pandor.

A Look At SweepSouth

Founded in 2014 by Aisha Pandor and Alen Ribic, SweepSouth reportedly reached $7 million (R100 million) in revenues in 2018.

“We went from the two of us working around our dining-room table — both of us sitting all day and working on this business plan — to going from a few domestic workers we were interviewing ourselves,” Pandor said, and “even went from cleaning houses ourselves to having 11,000 domestic workers on the platform”.

SweepSouth Says It Has Grown By 26% Since Its Last Funding Three Months Ago

In its statement, SweepSouth noted it has recorded “exceptional growth” since its launch in 2014 with its customer base, booking and revenue having trippled since its last funding round.

It pointed out that it has expanded operations to seven South African cities including Cape Town, Johannesburg, Pretoria and Durban.

SweepSouth said it has in partnership with Cape Town based insurtech Simply also been able to provide accidental death and disability cover at no cost to domestic cleaners who find work through its platform.

The startup also said it has grown revenue by 26% since the announcement in June of the investment by Naspers Foundry.

This growth, the company said, has enabled it to create about 15 000 employment opportunities for previously unemployed and underemployed domestic workers.

 

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world