What’s the biggest problem in the U.K.’s £11 billion ($15 billion) childcare market? No one wants to look after your kids after school, says entrepreneur Rachel Carrell.
Just one in three schools in London has an after-school club where your sprogs can play, and if you expected a mature, Mary Poppins-style professional to care for your kids until you clock off from work, you’ll be hard pushed to find one.
“There is a huge lack of people who actually want to do that job,” says Carrell pointing to the fact that these short shifts aren’t enough for trained nannies to make a full-time salary.
“I know parents who employ a nanny all day just for the after-school hours, and they feel like fools.”
To solve this, Carrell—formerly the CEO of the world's largest online doctor service, DrThom—is training university students to fill this gap in the market.
And investors are hooked too. Carrell has just raised £3.5 million ($4.7 million) in a round led by VCs Forward Partners and Albion Capital to bring these new-age nannies to frazzled parents around the world.
Building Koru Kids’ student workforce
Cullen started Koru Kids after becoming a working mother herself. “Parents are the most exhausted people on the planet, and yet we expect them to somehow patch childcare together,” she notes.
In response, she’s built a “loop of care” that not only benefits parents and children but will appeal to student nannies too (Koru translates as “loop” in Maori, the New Zealand-born founder explains).
The key sell for students is that Koru Kids lets them work flexible hours around their education while earning up to £11 ($15) per hour depending on family requirements: significantly more than the minimum wage they could expect in a local cafe or pub. Today 18-to-20-year-olds receive a minimum of £5.90 ($7.90), and 21-to-24-year-olds a minimum of £7.38 ($9.90).
It also provides them with training, background checks and community support (both online and off).
Parents benefit from paying a flat fee of £12 ($16) an hour, which includes a matchmaking service, and the management of paperwork and payroll.
And kids get to relax or play as they want. “When school finishes many children are often just really tired and want to be at home,” says Carrell.
Those who choose to nanny share through the service can save money, while students who choose to accept double bookings get a pay raise.
Already 18,000 nannies have signed up across the British capital, with the business growing 30% each month.
Building a business fit for future families
Carrell, who was once elected as a Young Global Leader by the World Economic Forum, has big plans to the flesh out Koru Kids’ digital offering.
She plans to use her recent fundraise to improve Koru Kids’ online communities (where they can swap tips on everything from behavior management to recipes and activities) to smarten up Koru Kids’ matchmaking processes and to develop digital methods that continue to train nannies throughout their employment, she says.
“We don't just do the initial match, we want to help support the best childcare long after,” says Carrell.
In the years ahead, the founder is also keen to expand into last-minute childcare cover, and younger age ranges, before taking on cities in Britain and beyond. “I'm constantly getting messages from people asking for us to open in their city, in the U.K., but also Ireland, Belgium and American cities like New York,” Carrell adds.
“My dream is to simplify parents’ lives, giving them headspace, and their children calm, all while creating amazing jobs for nannies,” she adds.
Goodbye Mary Poppins, hello savvy sitters of the smartphone generation.
