Urban Company is an Indian technology company that provides a platform for connecting customers with local service providers in various categories such as beauty, wellness, home repairs, and other professional services. The company was founded in 2014 by Abhiraj Bhal, Varun Khaitan, and Raghav Chandra, and it was previously known as UrbanClap.
The company operates in several Indian cities, including Delhi NCR, Mumbai, Bangalore, Chennai, Pune, Hyderabad, and Ahmedabad. It also expanded internationally to the United Arab Emirates, Australia, and Singapore.
Urban Company’s platform allows customers to easily book and schedule services with trusted and verified professionals in their area. The company employs a stringent onboarding process to ensure the quality and reliability of its service providers. It also provides its professionals with training and technology tools to improve their service quality and efficiency.
Urban Company has received several accolades, including being named one of India’s most innovative companies by Fast Company in 2020. It has also raised significant funding from investors, including Sequoia Capital, Tiger Global, and Vy Capital.
Here are a few statistics about Urban Company:
- Urban Company operates in 35 cities across India, the UAE, Singapore, and Australia.
- The company has over 40,000 trained and verified service professionals on its platform.
- Urban Company has served over 5 million customers as of 2021.
- The company offers services in over 150 categories, including beauty, wellness, home repairs, and professional services.
- Urban Company has raised over $440 million in funding from investors, including Sequoia Capital, Tiger Global, and Vy Capital.
- The company’s revenue grew by over 150% in FY2021 compared to the previous year.
- Urban Company has a high customer satisfaction rate, with over 95% of its customers rating its services as excellent or good.
- The company has been recognized with several awards, including the Economic Times’ Most Promising Brand award and the LinkedIn Top Startups award
Founding History / Founders of Urban Company
Urban Company was founded in 2014 by Abhiraj Bhal, Varun Khaitan, and Raghav Chandra in New Delhi, India. The three co-founders had previously worked together at the management consulting firm, The Boston Consulting Group.
The idea for Urban Company came from the founders’ personal experiences with finding reliable and trustworthy service providers for their home and personal needs. They realized that there was a gap in the market for a platform that could connect customers with verified and skilled service professionals.
To address this need, the founders started by creating a platform that would offer on-demand home services, such as beauty, home repairs, and cleaning. They began by manually onboarding service providers and manually matching them with customers. As the platform grew in popularity, they started using technology to automate the process of connecting customers with service providers.
The company initially operated under the name “UrbanClap” and focused on providing services in Delhi NCR, India. Over time, the company expanded its services to other cities in India and added new categories, such as wellness and professional services.
In 2019, the company rebranded as “Urban Company” to reflect its expanded range of services and its ambition to become a global platform for connecting customers with local service providers. Today, Urban Company operates in several cities in India, the UAE, Singapore, and Australia and has become one of the leading players in the Indian home services market.
Business Model of Urban Company
Urban Company operates as an online marketplace that connects customers with local service professionals in various categories such as beauty, wellness, home repairs, and professional services. The company follows a two-sided marketplace model where it brings together two distinct groups of users: service providers and customers.
Here’s how the Urban Company business model works:
Service providers: Urban Company’s service providers are skilled professionals who provide services to customers on the platform. To join the platform, service providers must go through a rigorous onboarding process that includes background checks, skill assessments, and verification of their identity and qualifications. Once onboarded, service providers can create a profile on the platform and offer their services to customers. Urban Company takes a commission on each transaction made on the platform.
Customers: Urban Company’s customers can access a range of services offered by service providers on the platform. Customers can browse and search for service providers based on their location, service category, and availability. They can then book services online, schedule appointments, and make payments securely through the platform. Urban Company also provides a rating and review system that allows customers to share feedback about their experiences with service providers.
Revenue model: Urban Company generates revenue by taking a commission on each transaction made on the platform. The commission rate varies depending on the service category and location. The company also offers value-added services, such as training and technology tools, to service providers for a fee.
Overall, Urban Company’s business model is based on creating a seamless and efficient marketplace that connects customers with local service providers and ensures quality and reliability of the services offered. The company’s success depends on building a strong network of service providers, providing excellent customer service, and continuously innovating to stay ahead of the competition.
Investors and Funding of Urban Company
Urban Company has received significant funding from several high-profile investors since its inception in 2014. Here are some of the key investors and funding rounds that Urban Company has raised to date:
Series A: In 2015, Urban Company raised $10 million in a Series A funding round led by SAIF Partners, with participation from Accel Partners and Kunal Bahl and Rohit Bansal, the co-founders of Snapdeal.
Series B: In 2016, Urban Company raised $25 million in a Series B funding round led by Bessemer Venture Partners, with participation from existing investors SAIF Partners, Accel Partners, and Snapdeal founders.
Series C: In 2017, Urban Company raised $21 million in a Series C funding round led by Vy Capital, with participation from existing investors.
Series D: In 2018, Urban Company raised $50 million in a Series D funding round led by Steadview Capital, with participation from existing investors.
Series E: In 2019, Urban Company raised $75 million in a Series E funding round led by Tiger Global, with participation from existing investors.
Series F: In 2020, Urban Company raised $50 million in a Series F funding round led by Steadview Capital, with participation from Vy Capital, Elevation Capital, and Tiger Global.
Series G: In 2021, Urban Company raised $255 million in a Series G funding round led by Prosus Ventures, with participation from DF International Partners, Wellington Management, and others.
Urban Company raises $190 million, joins unicorn club as valuation jumps to $2 billion
Overall, Urban Company has raised over $440 million in funding from investors, including Sequoia Capital, Vy Capital, Elevation Capital, and others. The funding has allowed Urban Company to expand its services, enter new markets, and invest in technology and product development. The company is considered one of the most valuable startups in India, with a reported valuation of over $2 billion.
Growth and Revenue of Urban Company
Urban Company has experienced strong revenue growth since its inception in 2014. The company has reported steady increases in revenue, driven by expansion into new markets, the addition of new services, and increased adoption of its platform by customers and service providers.
Here are some key revenue and growth milestones for Urban Company:
In FY2016-17, Urban Company reported revenue of INR 47 crore (approximately $6.4 million USD).
In FY2017-18, the company reported revenue of INR 116 crore (approximately $15.7 million USD), representing a year-over-year growth rate of over 140%.
In FY2018-19, Urban Company reported revenue of INR 216 crore (approximately $29.3 million USD), representing a year-over-year growth rate of over 85%.
In FY2019-20, the company reported revenue of INR 376 crore (approximately $51 million USD), representing a year-over-year growth rate of over 74%.
In FY2020-21, despite the impact of the COVID-19 pandemic, Urban Company reported revenue of INR 263 crore (approximately $36 million USD), representing a year-over-year growth rate of over 22%.
As of March 2021, Urban Company had over 35,000 service professionals on its platform, serving more than 5 million customers across India, the UAE, Singapore, and Australia.
Overall, Urban Company’s revenue growth has been driven by a combination of factors, including the expansion of its services, geographic reach, and customer base. The company’s ability to attract and retain service providers, as well as its focus on customer satisfaction and experience, have also contributed to its success. The company’s recent fundraising rounds suggest that investors have confidence in Urban Company’s growth potential and its ability to continue scaling its business.
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Future of Urban Company
The future of Urban Company looks promising, as the company has shown steady growth and continues to expand its services and geographic reach. Here are some factors that could shape the future of Urban Company:
Expansion into new markets: Urban Company has already expanded its services beyond India to the UAE, Singapore, and Australia. In the future, the company may continue to explore new markets and expand its services to new regions, as there is significant demand for home services globally.
Introduction of new services: Urban Company has already diversified its services to include a wide range of home services, from beauty and wellness to appliance repair and pest control. In the future, the company may continue to add new services to its platform, based on customer demand and market trends.
Investments in technology and AI: Urban Company has already invested in technology to improve the user experience on its platform and to streamline operations for its service providers. In the future, the company may continue to invest in technology, including artificial intelligence and machine learning, to further optimize its services and improve its efficiency.
Strategic partnerships and collaborations: Urban Company has already partnered with a number of other companies and brands to offer bundled services and promotions to customers. In the future, the company may continue to pursue strategic partnerships and collaborations to expand its reach and offer new services to customers.
Focus on sustainability: With increasing awareness around sustainability and the environment, Urban Company may also focus on integrating sustainable practices into its business model. This could include initiatives around reducing waste, using eco-friendly products, and promoting energy-efficient appliances.
Overall, the future of Urban Company looks bright, as the company continues to innovate and expand its services to meet the needs of customers around the world. With strong investor support, a talented team, and a focus on customer satisfaction and experience, Urban Company is well-positioned for continued success.
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