Hiring electricians, dog-sitters, senior or child-care providers is not a new practice. But becoming a central hub where users can come and search for contractors of various services based on price and customer-rating is hard to accomplish, given the diverse nature of the tasks the site should market. Launched in September 2012, Ukrainian Kabanchik has been working to establish itself as the leader in the larger region it is operating in.
Named Best Consumer Startup at IDCEE 2013 in Kiev, the company claims 5K users and 13K contractors and has now set its sights on expansion to the major cities of Ukraine. Currently based in Kiev, CEO Roman Kirigetov tells me that they are expanding first into Kharkov and Dnipropetrovsk and then into each major city in Ukraine by the end of the year.
In terms of financial backing, the company is supported by approximately $88K in funding. CEO Roman Kirigetov, who co-founded the company with university classmate and current CTO Alexander Yuryev, tells me that they began with $5K of their own money and then raised $20K through participation in the EastLabs acceleration.
They took home another $3K in prize money for winning at IDCEE and most recently raised $60K from 4 unnamed Ukrainian angel investors (invested $15K each) earlier this year.
This latest investment will be directed towards funding the company’s expansion plans, which includes not only efforts to establish itself in major Ukrainian cities, but also efforts to create a presence in neighboring eastern European and Asian countries.
Kabanchik raises revenue by taking 10-20% commission from transactions. However, Kirigetov says that it remains the prerogative of the contractors to set their own prices.
Competitors include local offline services. Kirigetov says that Kabanchik takes customers away by offering a cheaper alternative to established players.
Kabanchik is an alumnus of the EastLabs accelerator, which, together with GrowthUP and Happy Farm, operates one of the main startup programs in Ukraine.