Urban Company Posted Nearly 30% Revenue Surge, Cuts Losses

The market for home services, consumer internet company Urban Company, has shown an increasing growth trajectory since its founding in terms of scale. Since then, the company’s operating revenue has increased about fourfold, from Rs 248 crore in FY21 to Rs 827 crore in FY24. The company managed double-digit growth even during the pandemic (in FY21).

From Rs 637 crore in FY23 to Rs 827 crore in the fiscal year ending March 2024, Urban Company’s operating revenue increased by 30% annually, as per the company’s business summary.

The company from Gurugram also reported a 70% decrease in losses, which dropped from Rs 312 crore in FY23 to Rs 93 crore in FY24. It appears that capital efficiency, combined with increased margin and lower fixed expenses, has significantly decreased the company’s losses. In the business summary, Urban Company did not include revenue and expense breakdowns.

Note: These figures may differ from the actual balance sheet, which will be released in the upcoming months, as they have not been audited.

In addition to FY24, the business reported sales of Rs 281 crore in Q1 FY25, up 37.3% from Q1 FY24, according to the business statement. During the same quarter, the operating EBITDA of the company sponsored by Tiger Global was Rs 7 crore.

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The monthly net earnings of service partners who provided over thirty services in a month was Rs 33,469, according to the Urban Company report, while the average earnings of the top 20% were Rs 42,792.

The summary indicated that in H2 CY23, female service partners on the platform made 23% more money per hour than male counterparts. It’s important to note that the business typically paid service partners a commission of 25%. Urban Company’s total volume (GMV) in FY24 was estimated to be around Rs 3,300 crore.

“Investments in partner training and enablement, technology development, and the introduction of ‘Native’ RO water purifier devices were the driving forces behind this expansion. Through operating leverage and increasing efficiency across cost lines, we also achieved significant progress toward increasing profitability,” the company reported.

Media outlets reported on October 11 that the Urban Company had introduced a line of water purifiers under the “Native” brand. The company reports that during the first quarter of FY25, the annualized net sales from its range of water purifiers was Rs 96 crore.

Prior to Urban Company releasing its financial data, a $63 million secondary sale was completed, in which certain founders, supporters, and employees reduced their ownership stakes. The latest buyback ended up with a valuation range of $2.2 to $2.5 billion, according to sources.

The founders of the investment fund Titan Capital and e-commerce company Snapdeal, Kunal Bahl and Rohit Bansal, left Urban Company earlier this month, receiving a nearly 200-fold return on their nine-year investment. They gave their ownership to Dharana Capital, a division of Vy Capital, which completed a $50 million secondary deal at the company.