How Urban Company Cheered Its Way Through Local Services To Become A Unicorn
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Isn’t it a hectic job to find a plumber, beautician or yoga trainer nearby your locality. For this you make numerous calls to you relatives or you consult with your neighbors about it. Now, with the help of Urban Company, you don’t need to waste your time on making calls or consulting the neighbors as it helps you hire these services with just a click of a button.
The brainchild of IIT Kanpur alumni Varun Khaitan and Abhiraj Bhal, Urban Company claims itself as India’s largest marketplace for local services. Whether you are looking for a plumber, beautician, a yoga trainer or a wedding photographer, Urban Company is a one-stop destination for all local services.
All you need to do is place your requirements on the Urban Company app or website and within short span of time platform will bring these professionals to you.
On-demand home service provider Urban Company has raised $190 million from investors led by Prosus (formerly Naspers), according to reports.
The deal more than doubles the company’s valuation to $2 billion. In its last funding round, led by Tiger Global in 2019, it was valued at $933 million. Urban Company is thus the latest Indian startup to enter the coveted unicorn club.
Tiger, Steadview Capital, Vy Capital, and others also participated in the round. The company has so far raised $370 million of equity capital from investors across various rounds. Its other early investors include Bessemer India, Elevation Capital, and Accel India.
According to the filings, Prosus has invested $61.93 million, DF International $37 million, and Wellington Management $33.2 million, giving them a 3.18 per cent, 1.90 per cent, and 1.7 per cent stake, respectively.
The documents also show Urban Company allotted 2,613 equity shares and 50,490 Series F preference shares at an issue price of INR 265,553.1 apiece to raise around $190 million (INR 1,410.2 crore). News website Entrackr was the first to report the story.
After the deal, the three founders Abhiraj Singh Bhal, Varun Khaitan and Raghav Chandra will each own 8.22 per cent of the company. Elevation Capital (formerly Saif Partners) will hold a 14.56 per cent stake, while Accel India will have a 14.40 per cent stake.
Founded in 2014, the Gurugram-based company is a home services provider with a presence across India It has also expanded its footprint into international markets such as Australia, Singapore, Dubai, and Abu Dhabi.
After rebranding itself (it was formerly called UrbanClap), the company has seen its business grow steadily. The company made revenues of around INR 216 crore in FY20, up from INR 106 crore in FY19. It made a loss of INR 137.8 crore for FY20, filings show.
On April 6, the company had said that it would cover COVID-19 vaccination costs for its more than 30,000 service partners. It also said it would collaborate with local government authorities and healthcare providers to ensure its service partners are fully vaccinated over the next few months.