Traders in the laundromat business in Kenya can now access credit of up to Sh3 million, courtesy of a partnership between a Buy Now Pay Later firm Aspira Kenya and Hotpoint.
Launched as part of the Aspira SME Bizna financing programme, the deal will see Hotpoint Appliances provide laundry equipment, Avana provide technical and management support and Aspira will avail credit to help business owners in the acquisition of the machines.
Every laundromat, directly and indirectly, generates a minimum of eight jobs, hence the benefit of this sector to the economy. Laundromats are also more power- and water-efficient.
“This facility is important in eliminating barriers faced by SMEs, who are the drivers of the Kenyan economy, and lead to more jobs, wealth creation and financial inclusion,'' a joint statement read.
Aspira chief operations officer Irshad Muttur says critical is not ending the support at financing, but walking the journey of transformation with them through advisory and connecting them to the right business networks.
"Laundromats have proved a viable and profitable business in Kenya, in a country with a fast-growing middle-class segment that has seen demand rise in recent years,'' Muttur.
Hotpoint director Ravi Kanani on other hand said that consumers no longer wish to wait in long queues. At times, they may also not be able to come in and physically do their own laundry, hence, the laundromat business has also evolved to offer services that keep pace with customer needs.
"We will also play a key role in advising these entrepreneurs on consumer trends and market demands with a view of setting up at the best locations to achieve intended sales targets,” Kanani said.
For this partnership, Avana is also offering entrepreneurs the opportunity to operate via their franchise, in a bid to empower SMEs in the space with the right business plans that optimize their efficiency and revenues by tapping into an established network.
'People will always need to clean their clothes, and a laundromat provides an affordable and convenient way to do so,” Avana MD Natasha Njee said.
