Eden Life Raises $1.4M Seed Funding - Home Services in Africa

Life in Lagos and the Rise of Home Service Platforms

Living in Lagos, Nigeria’s bustling commercial center, presents unique challenges. With a population nearing 14 million, it stands as the largest city in sub-Saharan Africa.

Consequently, busy professionals often struggle to manage everyday tasks like cooking and house cleaning due to traffic congestion and demanding work schedules.

Addressing a Growing Need

While restaurants and cleaning services offer outsourcing options, a gap remains for providers delivering superior convenience and quality.

Eden Life is strategically positioned to become the leading platform for home service requirements, having recently secured $1.4 million in seed funding to expand its market presence.

Investment Details

The investment round was spearheaded by LocalGlobe, a venture capital firm based in the U.K.

Additional participation came from Africa-focused investors including Samurai Incubate, Future Africa, Village Global, Rising Tide Africa, and Enza Capital.

Founding and Platform Overview

Founded in 2019 by Nadayar Enegesi, Prosper Otemuyiwa, and Silm Momoh, Eden Life provides a mobile application for scheduling essential home services.

These services currently include food delivery, laundry, and cleaning.

Initial Reactions and Market Context

The launch of the home service app two years ago initially sparked some curiosity. At the time, many startups were focusing on fintech, e-commerce, and logistics.

It was unexpected to see the founders dedicate resources to a sector some considered unprofitable for a technology company operating within Nigeria.

A Personal Motivation

“The impetus behind this venture was deeply personal,” explained Enegesi, the startup’s CEO and a co-founder of the unicorn Andela, in a recent interview.

The founders conceived the idea for home services as Nigerians increasingly considered relocating abroad in pursuit of better opportunities.

Quality of Life Considerations

Enegesi personally experienced a significant decline in his quality of life when comparing his time in Toronto to living in Lagos.

Numerous reports have identified Lagos as one of the most challenging cities globally in which to reside.

Focus on Achievable Improvements

While systemic issues like unreliable power and poor infrastructure are beyond individual control, the founders believed providing accessible home services could enhance the lives of busy professionals.

Early Funding and Target Audience

Following a $600,000 pre-seed round from family and friends, Eden Life began targeting millennials and Generation Z individuals.

The platform specifically caters to those with demanding lifestyles, including tech executives, developers, and freelancers.

Service Adoption and Initial Model

Customers can subscribe to one, two, or all three services, with food delivery proving to be the most popular initial offering.

Initially, Eden utilized a distribution model sourcing food from a variety of third-party providers.

Addressing Quality Control

However, this approach presented challenges regarding consistent quality. Enegesi noted significant inconsistencies in standards among smaller service businesses.

Issues included a lack of adequate equipment, insufficient staff training, and inconsistent business processes.

Vertical Integration in Food Services

By the end of last year, the company determined that controlling quality required direct investment in standards and infrastructure.

This led to vertical integration within the food sector, with Eden launching its own kitchen to produce meals, resulting in a markedly improved customer experience.

Laundry and Cleaning Services

Laundry and cleaning services operate differently. Eden collaborates with existing laundromats and employs a network of trained freelance cleaners.

Logistics company Gokada handles approximately 75% of the company’s food and laundry deliveries.

Traction and Customer Engagement

The company currently boasts over 600 active users who utilize one to three services. On average, a customer uses two services five times per week.

The average monthly subscription fee is $100, covering either a daily food plan or a weekly cleaning and bi-weekly laundry service.

Revenue and Growth Potential

Based on current customer numbers and subscription rates, Eden Life generates approximately $60,000 in monthly revenue.

However, the CEO indicated that actual revenue exceeds this estimate.

Investor Perspective

Remus Brett, a general partner at LocalGlobe, highlighted Eden’s customer focus, attention to detail, and first-mover advantage as key factors in the investment decision.

He expressed confidence in the team’s proven track record in building successful African technology companies.

Current Operations and Future Plans

Since its launch, Eden Life has completed over 60,000 service requests in Lagos. The company has no immediate plans to expand to other Nigerian cities.

The seed funding will be allocated to developing in-house technology, expanding the team, and enhancing food production and distribution facilities, potentially exploring the dark kitchen model.

Focus on Lagos Market

“Lagos presents a complex market, and we must ensure operational excellence before considering expansion,” Enegesi stated.

Competitive Landscape

Africa is experiencing rapid urbanization and a growing middle class. While Eden Life currently focuses on Lagos, other regional players, such as SweepSouth, are entering the West African market.

Differentiating Factors

Enegesi remains unconcerned, noting the differing business models. Eden offers a horizontal approach, integrating food, laundry, and cleaning, while SweepSouth specializes in home cleaning.

Strategic Advantages

While a lean model focusing on a single service may seem advantageous, Eden’s expansive approach has proven successful thus far.

“Our strength lies in managing operational complexity, as addressing only one of these needs won’t deliver the comprehensive experience our customers desire,” the CEO explained. “We are committed to creating a complete home service experience, which may take longer but will also be difficult for competitors to replicate.”

Future Expansion and Vision

Although Eden Life is currently focused on vertical integration to control its supply chain, it plans to introduce additional horizontal products in the coming months.

“Fortunately, we are the ones who get to build this,” Enegesi concluded.