Based in Sydney, Oneflare is a marketplace that helps connect individuals with local service businesses that best suit their needs. For individuals and families, Oneflare saves time in searching for the right local business, helps find someone trustworthy and reliable, and ensures a fair price. For businesses, Oneflare provides timely, pre-qualified leads so operators can focus on the job at hand, while helping to grow reputation. Top categories on the site are cleaners, electricians, plumbers, removalists, pest control, painters, accountants, bathroom and kitchen renovators, landscapers, and gardeners.
Let’s look at some of its numbers
According to the press release, Oneflare has raised the funding following its recent growth: the company has seen a 1,300 percent increase in total traffic in the last 12 months. With over 130,000 unique visitors per month, Oneflare has more than A$16 million (US$15.2 million) in jobs requested. It also currently have over 30,000 businesses registered in over 250 service categories on its platform.
When dwell deeper behind the numbers, Oneflare told us that the average transaction amount for each job is between A$400 to 500 (US$381 to 476). While Oneflare can opt to take a percentage cut from the jobs, it charges businesses a monthly subscription plan, similar to a SaaS model. This model is slightly different from peer to peer task outsourcing platforms, such as US-based TaskRabbit, Sydney-based Airtasker or Singapore-based TaskAmigo. Typically, these platforms take a small commission for every successful match: Taskrabbit takes a 15 percent commission, Airtasker charges a fee of A$2 (US$1.90) plus 5 percent of the task’s value to the Runner, and TaskAmigo charges commission in the range of 10 to 35 percent. Due to this commission-based model, the revenue projection might fluctuate every month. Oneflare on the other hand, uses the SaaS model: the basic plan starts at A$24 (US$23) per month, and you have the option to go for the advance plan (AU$49 or US$47) and the professional plan (AU$99 or US$94).
“We’re now cash flow positive so this funding is really about scaling and becoming the number one marketplace for consumers and service businesses to find each other.” – Marcus Lim, Co-Founder and CEO, Oneflare
To ensure the quality of each business and service providers, Oneflare has several processes in place which act as “background checks”:
The new AU$500,000 (US$475,950) is invested by Les Szekely from Grand Prix Capital, Garry Visontay, Principal Sydney Seed Fund and Dr. Jeffrey Tobias, Director The Strategy Group. Les, Garry and Jeffrey have formed a small investment syndicate, and have previously jointly invested in DesignCrowd.
Capital will be used for scaling online user acquisition growth, continued marketplace innovation, and driving revenue growth.
Will it work in Singapore?
While Oneflare has been gaining some traction from Australia, will it work in Singapore? Similar to Oneflare, Quotations.com.sg has long been around, but we have not heard much activities from their end. Perhaps the verticals which contributed to Oneflare’s growth of traction is not applicable in Singapore. Cleaners, electricians, plumbers, removalists, pest control, landscapers, and gardeners — when was the last time you needed their services in Singapore? Most of these are taken care of by the management council of the apartment and condominium you are staying in. Today, over 80 percent of Singaporeans stay in the public housing by the Housing Development Board, where it is common to have town councils take care of property management.
This is exactly why Quotations.com.sg chose to focus instead on the Automotive, Education and Property vertical, and it’s probably a good idea for Oneflare to continue focusing and thriving in Australia, where there is a strong demand for the local businesses listings on their platform.