Dealt, a French startup formerly known as Mon Super Voisin, raised a €6 million ($6.5 million at today’s exchange rate) funding round a few months ago.
More importantly, the startup went through a major pivot. And this funding round proves that strategy was the right one. It’s an interesting course for early-stage founders who are thinking about pivoting but aren’t ready to pivot yet.
As the name suggests for our French-speaking readers, Mon Super Voisin was the typical freelancer’s market for home jobs. You could use the platform to find a “neighbor” to mount a TV on the wall, help you assemble furniture, or arrange a deep clean of your home.
The company realized that some of these are one-off jobs that don’t generate repeat customers. Even if customers find a gardener or cleaner through the platform, they will often bypass the platform altogether and pay the person directly.
At the same time, many of these tasks could be considered aftermarket services. When you buy a washing machine, you may need some help moving the washing machine to the right room and setting it up.
“Through an analysis of our business, we realized that over two-thirds of our user requests around the time of Mon Super Voisin were actually retail customers who needed help after they made a purchase,” Dealt co-founder and CEO told TechCrunch. Michael Braconnier.
Here’s why Treated now builds a service platform for retailers instead of end customers. The company first started working with Mr. Bricolage, a popular DIY retailer in France. Dealt operates a white label platform for Mr. Bricolage so that it can upsell its customers with services.
“We helped them develop their home delivery and installation offering. We developed the offer around installation products including lighting, curtains, mixer taps, toilets, shower cubicles etc.” said Braconier.
Before partnering with Dealt, some Mr. Bricolage had business cards of nearby craftsmen and simply shared a business card with a customer. But there was no way to know the price in advance, the shop wouldn’t take a cut of the transaction, and customers sometimes ended up going to another shop that offered a proper installation service.
This new distribution strategy for Dealt is more effective because the company now operates as a software-as-a-service startup and everyone’s interests are aligned. After an initial setup fee, Dealt customers pay a monthly subscription to access the platform. Subscription depends on the number of stores using Dealt’s tools and market.
After that, retailers like Mr. Bricolage can provide services and create new revenue lines as they take a cut of each transaction. As for service providers, it is another marketplace that can help them find customers.
For example, Jardiland, Truffaut and Botanic work with Dealt to offer gardening services. Some gardeners may already have their own customer base, but it can be a little quiet during the winter. Partnering with Dealt could be a way to supplement their income.
Other Dealt clients include Fnac-Darty, Orange, E.Leclerc, Conforama, Boulanger, 3Suisses and Rue du Commerce. Some of these retailers work with Dealt to provide services that are not necessarily related to a new purchase. Customers may want to repair something, transfer data from an old smartphone to a new smartphone, or resell old devices.
La Poste Ventures (managed by XAnge) is leading the €6 million funding round. Also participating are GO Capital, One Green, Holnest, Neo Founders and a bunch of business angels.
Dealt currently works with 10,000 service providers, 500 retail stores and 40 e-commerce customers. The startup expects to expand to other European countries next year, starting with Belgium, Switzerland and Spain.
