"Business despite the war" — is a special project of Ekonomichna Pravda, a project of USAID SOERA, the State Property Fund of Ukraine, and Prozorro.Sale. In this special project, entrepreneurs rented real estate at Prozorro.Sale auctions after the start of military aggression told us how they are working now.
Dmytro Kovtun's journey from Bakhmut to Kyiv in 2005 led to the birth of the Postirai-Ka self-service laundry chain in 2008. How he created and developed his business through the pandemic and full-scale war — in the short version of the article. You can read the full version of this article in Ukrainian via link
Inspiration strikes. Dmytro's friend in England introduced him to self-service laundries in dormitories, igniting the spark for his business idea. At the time, this innovative service was nonexistent in Ukraine.
Turning Vision into Reality. Dmytro developed an electronic system for managing washing machines and a central payment terminal to launch his venture. He also secured premises within educational institutions, many under the State Property Fund.
A slow start. Getting the first locations proved challenging. The Kyiv University of Technology and Design became their first partner, housing five machines. The bureaucratic process to secure these premises took months.
Bureaucracy and challenges. Renting from the State Property Fund involved lengthy paperwork and expenses, causing significant delays. Dmytro had to contend with stringent requirements and delays in formalizing leases.
Digital transformation. The introduction of Prozorro.Sale and reforms in the State Property Fund streamlined lease auctions, making the process faster and more transparent. Today, a single employee handles the leasing of state-owned properties.
Expansion and growth. Over 15 years, Dmytro expanded Postirai-Ka to over 120 locations in Kyiv and its surrounding areas. Rentals ranged from UAH 150 to 800 per square meter, accommodating spaces as small as 1 square meter to as large as 20 square meters.
Reaching beyond borders. Dmytro also found partners domestically and internationally who bought equipment and initiated their self-service laundry businesses. Nearly 200 such partners operate in Ukraine.
Investing in development Renovations, including wiring, pipelines, and ventilation updates, was often necessary before launching a new laundry. Initial costs for setting up each location could reach several thousand dollars.
Realizing the potential. Dmytro recognized the growth potential of his business in 2009-2010 as they expanded rapidly and attracted universities as clients. Their electronic module, priced at $1,500, was in high demand, with foreign partners joining the venture.
Adapting during crisis. The full-scale war in 2022 severely impacted Postirai-Ka, with demand plummeting by 90%. To support customers, Dmytro decided to halve laundry prices and make services free for the military.
Embracing technology. Despite the challenges, the Postirai-Ka service adapted, and the business owner developed a mobile app for payments and monitoring washing machine availability. This innovation expanded to other partners, generating additional revenue through app-based transactions.
Plans. The full-scale war has hit Dmytro Kovtun's business. Many educational institutions have switched to distance learning, so dormitories are empty. According to the entrepreneur, service demand fell by 90% in the first months. Then, the recovery began, but it is still at most 50-60 % of the pre-war level. But Dmytro firmly believes in our Armed Forces. He plans to participate in lease auctions to revive his business and continue serving universities when conditions improve.
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