At a time when every person starting up seems to be chasing internet and technology ideas, two young entrepreneurs from Madurai are sensing a big business opportunity in restoring old bags and shoes. Their business – Sparrow Laundry – has serviced 6,000 customers in Tamil Nadu in three years, refurbishing over 50,000 pieces in the process.
Thiru Kumaran S. and Manikandaraja S., distant cousins who started this venture with their own funds of Rs. 3 lakh and just three customers, now want to enter the Bangalore and Delhi markets in a big way. They are also looking to raise Rs. 1 crore toward expansion and technology.
“When we wanted to start a business, we were evaluating many ideas, and that was the time we realised that the number of cobblers is slowly dwindling,” says Mr. Kumaran. “Not just that. People also have stopped going to cobblers, and they just discard their bags and shoes. That’s when we thought: why don’t we pick it up at their doorstep and mend it for them.”
| Sparrow Speaks |
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| 1. Sparrow laundry started off with an initial investment of Rs.3 lakh. |
| 2.Has 16 collection centres in Tamil Nadu. Will soon be expanding in Bangalore and Delhi |
| 3. On an average, charges Rs75 upwards, depending on the shoes and bags. |
| 4. Customer- base- 6,000 in Tamil Nadu. |
| 5. Make Revenues of Rs 1 lakh per month. |
| 6. Sparrow laundry has its repair studio at Periamet in Chennai. |
Twenty-eight-year-old Mr. Kumaran, born in an agricultural family in Theni, is a graduate in hotel management. His partner, a year older, worked in the corporate sector after his graduation.
Their spa for shoes and bags does all the mending, cleaning and polishing under one roof – a studio at Periamet, Chennai, having eight cobblers. About 40 per cent of work is done manually, while machines take care of the rest. One of the recent highlights of this fledgling outfit was the repair of a Rs 1.5 lakh worth Louis Vuitton bag.
The big break for Sparrow came in 2014 when Kumaran and Manikandaraja participated in a pitch-fest organised by The Indus Entrepreneurs, a non-profit network of entrepreneurs and professionals. They got introduced to a firm called Laundry Project India, which then picked up a 60 per cent stake in Sparrow, investing Rs. 15 lakh in the process.
Mr. Manikandaraja says, “It really made sense for us to accept their offer because we felt those who go for a laundry service would also need a shoe repair or a bag repair.”
Sparrow offers both doorstep pick-up and delivery. It also has 16 collection centres — taking up a small space inside the outlets of parent Laundry Project. Customers are emailed pictures of the refurbished items. If they are not satisfied, Sparrow offers to refund their money.
Mr. Manikandaraja believes their venture has provided a better working environment for cobblers. “People’s mindset has changed. Cobblers are very comfortable working in a studio.” The venture wants to have 100 cobblers on its rolls in three years, from eight now.
Their estimate is based on a few things. One, the number of people walking into their stores (400 now) is increasing by 10 per cent every month. Two, their expansion plans. The founders reckon this is big business, and that there is at least a Rs. 10 crore market awaiting them in Chennai alone.
