Handies

Quick Pitch

Did you miss your chance to invest in Bolt? Now there’s an opportunity to take part in the next Estonian success story! The Handies mobile app is the ‘Bolt’ of handymen – one might even say it is a ‘nut’. While you can order a taxi using the Bolt app, in a similar manner you can order a handyman, cleaner or other assistance from Handies within a couple of minutes and with just a few clicks.

Handies is available for Android and iPhone devices. Today, we have more than 600 customers and 200 handymen – so our work is constantly being done!

The aim of this investment round is to accelerate the marketing on a grand scale, with strong product development, an expansion of the handymen and partners network and an analysis of our first foreign markets.

Problem & Solution

The market for small domestic projects still has the character of the Wild West – there are no trustworthy platforms for finding service providers, orders are usually placed by phone and are based on trust. The payment and pricing are not transparent and the transactions mainly take place in cash. If something happens – who is responsible?

The Handies mobile app offers a full solution for the entire user journey, as well as communication between the customer and the service provider. Handies makes the process of finding a handyman quick, convenient and secure.

The main problems tackled by Handies include:

Finding a handyman. The saying that a good handyman is difficult to find is not an exaggeration – if a customer doesn’t happen to work in a particular field, finding a good electrician, tiler, handyman or even a cleaner is challenging at best. Today, many people are contacting handymen on Facebook, by asking friends, or through Google and other similar channels. But none of these channels guarantee that the handyman will be trustworthy, will produce high quality work, and has the skills that correspond to the customer’s needs.
Trust. Like Bolt, Handies makes the ordering process transparent and trustworthy. The exact time, location and cost of the project is agreed via the app. This means there is no chance of miscommunication. In addition, a timer is started for each task, which records the duration of the work from start to finish.
The exact fee and the approximate costs are agreed before the work begins. Therefore, the customer can be sure there are will be no unexpected surprises when the invoice is delivered. Furthermore, there is no need to negotiate the price. The handyman can then focus on their strength – completing the work – and not waste time on negotiations and bargaining.
Payments. Solvency of the customer is confirmed before the work begins (we credit their account for the first hour of the project fee), and further amounts are credited automatically as the work is completed. In this way, the handyman can be sure that they will receive their money when the project is done. The customer doesn’t need to bother with handling cash, as all payments are handled seamlessly in the background (in the case of card payments). The customer can pay by credit card and in the near future (at the end of 2020) there will also be an option to pay in cash directly to the handyman.
Responsibility. As all the tasks are precisely documented, any disputes can be easily resolved by referring to the agreement that states who is responsible for what, as well as who will provide compensation for damages. In the next 12 months, we will also implement the Handies insurance policy, which will automatically apply to all the handymen and projects completed on our platform.

Product/Service Details

1. Ordering a handyman: Get your home repaired with more free time!

The Handies mobile app is the best assistant when it comes to your home repairs. Do you need a handyman, cleaner, electrician, mover or any other helper right away? The Handies app will enable you to find the best assistance quickly, by matching your expectations regarding price and quality.

The Handies app allows for convenient payments using a card, so you can be sure that you’re not paying a penny extra. The app keeps track of the time spent for completing the work. And you only need to pay for the actual time spent. It’s that simple!

The process:

Choose a handyman
Add a date and picture
Submit your order

2. Find a new gig: become a handyman!

Are you an electrician? A plumber? Or a chimney sweep? Do you clean? Clear snow? Drive? Become a handyman and earn some extra money!

The Handies Handyman app is the perfect platform for quickly and conveniently finding new customers, or earning additional money in return for sharing your skills. The Handies Handyman app is perfect for those who wish to help customers with small tasks at home, like electrical repairs, smaller renovation and construction tasks, cleaning, clearing snow and a lot more. In addition, our application is also available for companies who would like to connect with a number of handymen.

The Handies Handyman application allows a handyman to enter the time needed for completing a job, the hourly fee and their working area. Thus, the handyman is in charge of defining how they want to work. Payments are arranged to be made conveniently and automatically through the app, so there is no need to demand money from the customer or worry about payments being made on time.

Business model

Our business model is based on the shared economy. Handies signs a contract with the handyman (service provider), based on which invoices are generated on a bi-weekly basis for the services provided through Handies during the previous two weeks.

Handies deducts a commission fee (15% + VAT) from the total amount paid and transfers the remaining amount to the handyman’s account. This is our main source of revenue.

The app is an effective solution for service providers. Customers are directed to them through the platform, then invoices are sent automatically to the customer as well as to the service provider who can then enter the information necessary for their accounting purposes. As a private person, the taxable part of the proceeds can immediately be declared.

Similar platforms have been very successful in the USA. Handies got some initial inspiration from Taskrabbit – one of the most successful platforms of this type. In addition to Taskrabbit, there are several similar apps operating in the USA, e.g. Handy, Helping, etc. https://craft.co/compare?companies=taskrabbit%2Chelpling%2Chandy%2Czaarly%2Cthumbtack

This means that these applications have proven to be useful. Estonians have adopted the Bolt app for ordering taxis, which is a further validation of this approach. We have made the process of ordering handymen similarly seamless in the Handies app, so we see a huge opportunity to expand this product in the Estonian market and extend it to other countries.

Market

Handies has two target customer groups – clients and service providers.

Clients or end-customers

The demand for hiring help to perform everyday household tasks is already large, and many people are struggling to find professional service providers. There are less and less people who want to, or are capable (as they are lacking time, tools, etc.) of completing these tasks themselves.

Characteristics of the client:

Homeowner
Bank account with a sufficient balance
User of a smartphone in their daily life
No free time
Lacking skills or interest in performing certain tasks

Based on an analysis published by the Statistical Office, there were approximately 600,000 families (with an average size of 2 people) in Estonia in 2019. 420,600 of these families had access to the internet on mobile devices.

Around 750,000 people in Estonia use social media.

660 people responded to a Handies test advertisement on FB. Based on their comments, 45% of these people were identified as potentials users of the service. Most FB users are aged between 25 and 34, so this age group will probably form the majority of our customer base.

Based on the information from the Statistical Office, as well as the results of a questionnaire, the market size has been evaluated as follows:

Based on the Statistical Office data, around 67% of the 420,000 families with mobile internet access in Estonia use these devices for ordering services. Therefore, around 282,000 families can be considered as potential customers for Handies, and we plan to win around 15-20% of this market.

Service providers

Marketing presents a challenge for small and medium-sized businesses (SMB), since it costs a lot of time and money. Handies solves the sales and administrative challenges for these businesses, so that the service providers can focus on delivering value.

Characteristics of the service provider:

Self-employed or member of a small company (1-10 employees)
Looking for jobs and needs more customers
Skills in fixing home appliances, renovations and other domestic projects
User of apps on smart devices

There are thousands of companies registered in Estonia whose activities fall into the fields of construction, renovations, and similar types of work. This number will increase further due to the simplified tax system, e.g. entrepreneur accounts. Handies will enable these service providers to reach their customers more quickly.

The number of service providers included will depend on the demand. Their profiles will be based on Facebook posts and groups, service provider columns, local newspapers, web searches and ads.

New markets

The upcoming target markets for the Handies app include Latvia and Finland. This is due to the fact that we have already established the necessary legal and marketing contacts through our partners in these countries. There are also a lot of Estonian workers or handymen who are willing to offer their services in Finland using the Handies app.

We have assumed that the app will mostly be used in in the bigger cities of Latvia and Finland. These include Helsinki, Turku, Tampere and Oulu in Finland, with a total population of approximately 2 million. In Latvia, 800,000 people live in the capital city of Riga.

Our other expansion plans will depend on the situation and the opportunities that arise. Our aim is to enter those markets where the number of potential customers is as high as possible. It is also important that the market enables the use of the Handies app, and that there are no legal limitations.

In Estonia, one of our competitors is Hange.ee, where bidding rounds are organised to find service providers. However, this is not a direct competitor as the site focuses on larger projects, while service providers for smaller jobs are found elsewhere.

In addition to Hange.ee, the alternatives include Wirk, Tööleidja, Hotlead, Facebook groups, etc. We can see that there are a number of solutions that have been developed for finding service providers, but most of these are still mediator platforms, which often do not provide a suitable and quick solution for the customer.

Traction & Accomplishments

iOS and Android apps are available on the market
Month-over-month (MoM) growth in the number of customers in the last 6 months by more than 600 users
Month-over-month (MoM) growth in the number of service providers in the last 6 months by more than 200 users
Over 50 different work categories are covered
Regular orders are being made through the app
Continuous marketing campaigns are targeted at service providers and customers
Over 700 followers on social media

How We’re Different

After talking to our customers and service providers, we concluded that if we cannot solve the entire process of ordering and completing their projects, then we are not contributing anything. In reality, the service providers and customers are not interested in using ten different apps and digital tools for completing their tasks.

As specialists, the service providers would like to focus on their main tasks. They are willing to use an app that would actually make their lives easier by tackling the challenges of placing orders, making bookings, measuring time scales, and organising accounting and payments. Prior to now, these issues would have been dealt with by hiring an assistant (who is usually shared by multiple service providers).

In Estonia and its nearby markets (Baltics, Finland and Sweden) there is currently no full solution, even though there are applications and websites which can help customers find handymen, ask for proposals, measure time scales, issue invoices, etc. In other words, there is no platform that is involved in the entire value chain for the service provider, as well as for the customer, with minimal time spent and the maximum efficiency.

When you order a taxi, you do not want to bargain with five different drivers to get the best offer to reach your destination. You simply want to get from A to B. Similarly, when you have a small project you just want to solve your problem and not talk to five different service providers.

The United States is the most mature and competitive market for domestic and small household projects. It is a large enough market to provide an opportunity for dozens of similar platforms – each marginally different when it comes to the target audience or a specific niche. Although we are not presently planning to enter the US market, there is still a lot to learn from the solutions that have been successful there.

In Europe, the market is still at an early stage, so we have identified an opportunity to provide a wider solution here. As a European company, we are already aware of the specific local details, like stricter legal requirements, which apply to the intermediaries, customer data (GDPR), taxes, responsibilities, etc.

Uses of Funds & Timeline

We are announcing an investment round in order to:

Launch large scale marketing activities to establish our brand in Estonia and to broadcast our service to every single family.
Exit from the prototype phase, during which we validated different ideas, solutions and business models. The biggest emphasis will be on the product design and improvements to the user experience.
Grow the network of service providers on Handies through partnerships with companies, as well as by including more individuals.

We are also making preparations for entering our first foreign markets.

Activities scheduled for the next 8 months:

Continuous and complementary product development, including refreshing the design and the user experience.
Organising a large-scale marketing campaign in Estonia.
Establishing relations with different service providers and partners.
Researching Riga and Helsinki markets, and taking the first steps to enter these markets

Obligations to Investors, Profit Distribution

For our Fundwise investors, we offer the option of redeeming their funds during future investment rounds.

Dividends will be paid to our shareholders once we start earning a profit. Initially, the main focus will be on expanding the business and entering new markets. The dividends will be paid in the amount of 30% of the overall profit, and the first payments are planned to take place between 2022 and 2023.

Additionally

Each Fundwise investor will receive credit for the Handies app totalling 10% of the investment amount (up to EUR 1080). After investing EUR 90, an individual will receive EUR 10 of Handies’ credit, while by investing EUR 990 the investor will receive EUR 99 worth of credit. Invest in Handies and fix your home for free!

Risks and Mitigation

Infrastructure security. Security is guaranteed by using modern web services shared responsibility models – Google GCP and the Amazon AWS Shared Responsibility Model

Software updates are issued by a team of engineers with more than 10 years of experience.

Server security, administration, risk management and the main admin account are handled by certified developers, overseen by an expert in the security and legal domain.

Payment solution security. Payment security is guaranteed by our payment services partner: EveryPay AS.

Merit Aktiva accounting software is integrated with the payment solution.

Handling debtors. If the customer chooses to pay by card, the card is checked in advance and a fee is booked. This reduces the level of risk from insolvency; however, if this does happen, we can deduct the amount from the customer’s account as soon as the balance is sufficient. If the customer chooses to pay the service provider directly using cash, the service provider is then responsible for transferring the required amount to Handies. As this involves a contractual relationship, the rights of Handies are protected based on the Law of Obligations Act. However, a good relationship is mostly guaranteed by the service provider being interested in continuing to use the platform.

Storing customer data. Data security is the responsibility of our legal partner (board members). Sensitive data must not be stored and important information shall be encrypted.

Validating and identifying service providers. Service providers are validated using training and background searches (checking the required certificates). We are planning to use Veriff OÜ for the purpose of conducting these checks.

Securities for guarantees. Guarantees are secured on a case by case basis, and by using insurance (in cooperation with insurance companies).

Work conducted by service providers. The work quality is guaranteed by using service agreements and will soon also be confirmed by insurance.

COVID-19. Protecting customers and service providers from the coronavirus is a priority for Handies. We are presenting our customers and service providers with conduct manuals, as well as the rules imposed by the government, using email and phone notifications. Ensuring our users behave in the correct manner is still of utmost importance. If a customer has any symptoms, they must not invite a service provider into their home. Similarly, if a service provider has symptoms of a cold or a virus, they must not offer their services. Each user of the app can easily deactivate their service provider account for that the necessary period of time or postpone a job they have already agreed to perform.

Quick Pitch

Problem & Solution

Product/Service Details

Business model

Market

Traction & Accomplishments

How We’re Different

Uses of Funds & Timeline

Obligations to Investors, Profit Distribution

Risks and Mitigation

Investment amount

Equity offered

Equity offered per investor

Current share capital

Company current valuation

Share capital after campaign

Company valuation after campaign

1 € nominal share price

TEAM

Aare Sule

CEO

Kaspar Triebstok

CTO

Kerli Tootsmann

Software Engineer

Maria Plees

Head of Marketing

Erik Ehasoo

Advisor, Business Development

Marten Pikaru

Advisor, Construction