Laundry Startup Receives Cash Infusion

Posted February 25, 2015 at 6:35 pm

Philadelphia startup Wash Cycle Laundry (WCL) recently received $450,000 from the Distinguished Social Ventures Foundation (DSVF), according to news reports. The loan terms are unique, and give WCL a powerful incentive to expand.

The current interest rate on the loan is 5%, but WCL has five years to reduce that rate. If WCL creates 200 jobs, interest on the loan will drop to 3%, and if it creates 500 new jobs, the interest rate will go down to just 1%. “I’m really excited that this financing aligns our financial interests with our mission interests,” says Founder and CEO Gabriel Mandujano. “If we’re better at achieving our mission, we’re also financially rewarded for that.”

Not only is WCL excited about the capital infusion and expanding its customer base, it’s also forging a path for its business model. Founded in 2010, and currently operating in Austin, TX, Washington, DC, and Philadelphia, the company focuses its business model on corporate responsibility, and takes both environmental and social action. It uses environmentally friendly, high-efficiency machines and powerful bike trailers for hauling clean or soiled loads. Hiring efforts target vulnerable populations, such as formerly incarcerated people and longtime welfare recipients.

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