Clickafix, backed by venture studio, Fast Forward, has introduced an annual model of ₦24,000 ($31.65) subscription that covers repairs for home services in Nigeria.
This is after tech companies like VConnect, KeyaHelp, and Findworka have tried to offer solutions to the hard situation of home services in Nigeria.
This new model addresses three problems. “One, is how do you find dependable artisans. Second, getting down to negotiate the price. The third is the convenience and ease with which you can get an artisan,” said Pawan Bhandari, the co-founder alongside Arusha Goswami.
Bhandari indicated that the 24,000 membership only covers the cost of the workmanship, and that a separate payment is paid for the materials whenever they are required. You have the option of purchasing the materials yourself from the company, or you can ask for an estimate of how much money you should expect to spend on it.
Read also: Moroccan home services startup PrestaFreedom secures $1.1m
The situation before Clickafix’s model
The first technological solutions for the home services business in Nigeria took the form of either an online directory of craftsmen or a market that brought together clients and artists.
Even though these solutions will offer you potential service providers, it will be monumental work for you to evaluate them and negotiate a price that is affordable.
Emerging players such as Eden Life and Clickafix, on the other hand, have developed innovative solutions. Eden Life, which debuted in 2019 with the intention of digitising household services, employs a subscription-based business model similar to that of Clickafix but with a more limited range of services (Clickafix provides plumbing, electrical work, HVAC services, carpentry, and appliance repair), and it charges an average of 42,000 per month.
Despite the fact that this subscription-based model does not address the issues that come with formalising Africa’s informal home service business, Clickafix’s reduced price is a competitive advantage that gives the company an advantage over its rivals.
One of these responsibilities is checking the credentials of the service providers listed on Clickafix.
In order to guarantee that the service providers on the Clickafix platform meet the requirements, the company uses a kind of authentication known as “three-factor authentication.”
More endeavours of Clickafix
The collaboration with the eight technical institutions in Lagos was selected by the start-up company based on the calibre of both the colleges and the instructors there. After being carefully vetted, certain service providers are allowed to proceed to the next level of the authentication process: background checks.
These checks include confirming the identity of the service provider and requiring the service provider to supply Clickafix with the contact information of a guarantor, whose information will also be verified by Clickafix.
The final step is a soft skills training session with Clickafix Academy lasting for ten hours. During this session, the service provider will receive training on how to appropriately interact with consumers as well as general ethics in the workplace.
According to Bhandari, the company has had relatively few problems with clients since implementing the three-factor authentication system. This indicates that the system has been successful thus far.
Aside from that, though, he is of the opinion that the manner in which service providers are dealt with has a considerable impact on the output they produce.
“We treat them as partners rather than looking at them as a vendor,” he said.
“If you treat people with respect, they will remain within your ecosystem.”
Despite the fact that mutual respect keeps service providers happy, Clickafix is having a hard time winning the trust of Nigerian clients.
“It takes time for a customer to do two things: trust a company and change their buying behaviour. This is not a service bought on impulse. It is not like going on Jumia to buy one shoe and you see three other shoes and end up buying three pairs of shoes. It is a very need-based service.”
According to Bhandari’s, the process of acquiring new customers takes more time when the service is need-based. He stated that it is necessary to have regular communication with the client when operating a service that is centred on the customer’s needs.
https://techpressionmedia.com/leadway-assurance-gamp-launch-device-protection/
How Clickafix would earn from the model
How does Clickafix earn money off of a yearly subscription that costs $24,000, given that it takes a long time to acquire new customers and requires ongoing communication?
In spite of the fact that Bhandari claims it to be a trade secret, all that he disclosed was the fact that Clickafix’s business model relies on economies of scale to ensure that the company generates money while also adequately compensating the service providers.
One of the reasons why Fast Forward, a venture studio that already has companies such as Bumpa, Chimoney, and Dojah on its portfolio, is financing the startup is because of its distinctive approach to conducting business.
Opeyemi Awoyemi, General Partner at Fast Forward Venture Studio said: “We’ve seen many companies try and fail to crack the home services space in Nigeria. What makes Clickafix truly unique is the strength of the team and their deep understanding of the challenge.”
Bhandari also noted that in addition to the financing that Fast Forward delivers to the startup company, the venture studio also understands the obstacles that the company has and shares the enthusiasm of adding some structure to a market that is otherwise informal.
Bhandari’s aim for the firm, which is scheduled to be launched in 2022, is to scale outside of Africa and outlive the founding team. Although he would not disclose traction data, the Clickafix app presently has more than 10,000 downloads on the Google Play Store. This is despite the fact that the firm is still in its early phases.
This number has the potential to skyrocket as Clickafix is also introducing a B2B2C model, which will allow it to bring on board businesses that require its service. These companies, in turn, are able to give it to their staff members as a perk of working for them.
A true sign of success has not yet been witnessed, despite the fact that the new participants in Nigeria’s home service sector are working towards the goal of disrupting the field with distinctive business models.
If we assume that all 10,000 individuals who downloaded the app on Google Play Store are subscribed — which is highly doubtful — that’s a 240 million ($316,452) annual revenue, but the question is: will it cover operational costs? Time shall tell as, Clickafix’s success is predicated on its economies of scale.
