Urban Company Grew 45 Per Cent YoY In FY23 While Reducing Losses Urban Company has released its annual business summary FY'23 which highlights their YoY growth of 45 per cent.
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Urban Company has released its annual business summary FY'23 which highlights their YoY growth of 45 per cent. The report highlights their two key values : customer obsession and partner empowerment. The report speaks about how these values have helped them improve service experiences, enable partners to lead decent middle-income livelihoods and grow meaningfully while progressing toward profitability. They also delve into the efforts to strengthen their corporate governance and ESG practices.
-Revenue from operations grew 45 per cent YoY: From INR 438 Cr. in FY22 to INR 637 Cr. in FY23
-Losses before taxation (Ind AS) reduced from INR (514 Cr.) to INR (308 Cr.)
-Adjusted EBITDA loss reduced from INR (377 Cr.) to INR (297 Cr.)
Average ratings on the platform were 4.82/5.0 in FY23, with 77% of the business coming from repeat customers (Acquired in years prior to FY23). The top 20% of partners earned an average of INR 40,000 per month, net of all commissions and other related costs (Travel, product expenses etc.) in H1 CY23. The average net earnings of partners delivering >30 services per month were INR 32,000.
Thier growth in FY23 came on the back of investments in service quality, partner training and enablement, new innovations, brand building and technology development. UC saw steady business growth with revenue from operations (consolidated) growing by 45%, from INR 438 Cr. in FY22 to INR 637 Cr. in FY23. They also made meaningful progress towards improving profitability driven by operational leverage in fixed costs and driving efficiency across other costs. Losses for the year declined from INR (514 Cr.) in FY22 to INR (308 Cr.) in FY23.
The India business broke even on an adjusted EBITDA basis during Q1 FY24 with negative working capital. India business contributes approximately 90% of their revenues.
Over the years, UC has seen a steady improvement in average ratings given by customers at the end of each service. In FY23, customers on average rated their services at 4.82/5.0, across millions of ratings collected on our apps. These included more than 17 million services rated 5-stars by customers. The third party platforms such as the Google Playstore and the Apple App Store, their average app rating is 4.7 (on a scale of 5) across > 1.8 million ratings.
As far as partner empowerment is concerned, according to their latest Partner Earnings Index for H1 CY23 (Read here (A)), their service partners continue to benefit from increased earnings:
-The average monthly earnings of all service partners on the platform have increased by more than 10% over H2 CY22
-Top 20% partners earned an average of ~ INR 40,000 per month, net of all commissions and other related costs (Travel, product expenses etc.) in H1 CY23
-Average net earnings of partners delivering >30 services per month (53% of our base in H1 CY23) was ~ INR 32,000
All active partners in India benefit hfrom a free life, accidental and health insurance cover. Details of their social security benefits for partners in India are detailed below:
-Free life insurance cover of INR 6 lacs
-Free disability insurance cover of INR 6 lacs
-Free health insurance cover for up to INR 1 lacs
-Select high performing partners get a free family health insurance cover of INR 2 lacs covering their spouse and two kids
-Up to 12 free medical consultations per year
-Additionally, they enable access to credit on easy terms for our partners through tie ups with NBFCs and fintechs. All eligible partners can avail personal loans up to INR 1 lacs and initial kit loans at attractive interest rates.
