WashSwat, a mobile laundry service based in Korea, has raised KRW 7 billion (approximately USD 5.3 million) in a Series C bridge round of funding.

The round was led by existing investor We Ventures, with follow-on investments from UTC Investment and Strong Ventures, and new participation from Woori Financial Capital and Prologue Ventures. This round brings WashSwat’s total raised to over KRW 51 billion (approximately USD 38.7 million).

Despite a substantial operational loss of KRW 16.8 billion (about USD 12.8 million) in 2022, WashSwat managed to reduce its losses to KRW 4.6 billion (around USD 3.5 million) in 2023.

The company attributes its reduced losses not to temporary cost-cutting measures like layoffs, but to achieving cost efficiencies through its smart factory operations.

Additionally, the introduction of premium laundry services, along with specialized cleaning for items such as tents and strollers, has significantly improved profitability and helped attract this latest investment. WashSwat plans to use the funding to strengthen its market position and expand its smart factory operations, aiming to offer services at lower prices and higher quality.

Namgung Jin-ah, Co-CEO of WashSwat, said, “Focusing on the fundamental aspects of our service to improve profitability and establish a viable revenue model has favorably influenced our ability to attract further investment. With this capital, we plan to enhance our smart factory capabilities and improve our logistics and app services.”