Homejoy, a US-based domestic cleaning services provider backed by internet company Google, has entered talks to be acquired by competitor Handy, a US-based home services platform, TechCrunch reported yesterday, citing undisclosed sources.
Handy and Homejoy each provide a platform for freelancers to offer home services to potential clients, but while Homejoy focuses on cleaning services, Handy also lists other professionals such as plumbers. Both the companies’ services also process payments and vet workers.
Homejoy previously secured $38m for a combined series A and B round in December 2013.
Google Ventures, the corporate venturing arm of Google, led the series A round, while venture capital firm Redpoint Ventures led the series B. VC firm First Round Capital and a range of angel investors also participated in the rounds.
The company had already raised $1.7m in seed funding from Andreessen Horowitz, First Round Capital and assorted angel investors. Originally named Pathjoy, it graduated from Y Combinator in 2012, when the accelerator offered startups $80,000 in seed funding.
Homejoy has faced some challenges of late, shutting its platform in Canada and France in December 2014 in order to focus its efforts in Europe on Germany. Its chief financial officer, Mark Vranesh, resigned earlier this month.