General contractors have bigger jobs than bathroom remodels to worry about right now, as entire homes or, at least entire floors are keeping the construction workers busy.
How to solve the problem?
Through technology, of course.
Made Renovation, a California startup that specializes in bathroom renovations, will expand into Los Angeles, Orange County and Seattle after securing $23 million in Series A funding.
When Technology Is the Answer
Made Renovation founders Roger Dickey, who previously co-founded Gigster, and Sagar Shah, who previously founded Quad, thought they could create bathroom templates whose scope and costs are generally understood, line up customers for them, then hire general contractors who are willing to focus only on these bathrooms.
Customers simply pick a collection, Made Renovation then puts together a “mood board” of materials from that collection, sends out a 3D rendering of what to expect, then goes into build mode with its general contractor (GC) partners.
As for what happens when that build goes awry, Dickey says Made Renovation has it covered. Most notably, while it guarantees the work to its own customers, the GCs with whom it works guarantee their work to Made Renovation.
Insight Partners Managing Director Nikhil Sachdev will also join the Made Renovation board of directors, the startup said.
”In this new age of digital disruption heightened by COVID-19, Made Renovation’s all-in-one platform has reimagined the home renovation experience,” Sachdev said, “and we are thrilled to see the company continue scaling as they expand to new markets with this round of funding.”
The expansion plans come as homeowners across the country have been increasingly eager to pour money into home improvement projects. Made Renovations is now averaging around $50,000 per day in sales, a number that saw significant growth during the pandemic, the startup said.
The typical bathroom renovation on Made Renovation’s service starts at $15,000, the company said.
Refining Renovation Process
As Made Renovation has continued to expand, it has made investments in its internal project-management system, as well as its design and pricing technology. These investments have resulted in new design previews, more successful project completion timelines and increasingly accurate price quotes, the company said.
“We’re proud to be welcoming new investors as we continue to make renovation easier for homeowners and delight them with beautiful new bathrooms,” said Dickey, the CEO. “Beautiful, aspirational spaces can and should be accessible to more homeowners, and our team is looking forward to delivering just that in new regions.”
Bathroom renovations may be attractive for people spending more time living and working from home, but in recent months, renovations in general have not been a particularly fruitful investment from a seller’s perspective.
Single-family homes and condos sold by house-flippers totaled only 2.7 percent of all sales in the first quarter of 2021, according to a report from Attom Data Solutions. This was the lowest share observed in more than two decades. Prices and profits on flipped homes were both in decline over this period as well.
But in an interview with Forbes, Dickey said these renovations added significant value for residents — especially those who have been spending more time than ever at home.
“During COVID-19 people had money to spend … and not many places to go to,” Dickey told the magazine. “Plus they went to the bathroom five times a day.”
Show Us the Money
The Bay Area company announced the new funding on July 9, which comes from Insight Partners and existing investors Base10 Partners, Founders Fund and Felicis Ventures, according to a news release.
The company also said Instacart, Doordash and Lime joined this round of funding as “strategic angel investors.”
Dickey also notes that while the startup “may lose money on some projects,” he stresses there are caveats that customers agree to at the outset.
Among these, he says, “We can’t X-ray their walls and see if they don’t have wiring up to code. We don’t cover dry rot in walls.”