Tiger Global leads $75 mn Series E round in home services marketplace UrbanClap

Tiger Global leads $75 mn Series E round in home services marketplace UrbanClap
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2 Aug, 2019

Delhi-based home services marketplace UrbanClap has raised $75 million (Rs 520 crore at the current exchange rate) in a Series E round, led by New York-based hedge fund Tiger Global.

The round also saw participation from existing investors Steadview Capital and Vy Capital, the company said in a statement. 

The transaction will have two components: a primary transaction where Tiger Global, Steadview and Vy will subscribe to fresh shares of the company. The deal also entails a secondary share where some early institutional investors will offload their stakes.

The statement, however, did not mention how the latest round of funds will be utilised.

While the last-known valuation of UrbanClap was around $450 million, the current round is likely to have valued it around $530 million, going by rough estimates and assuming that it is raising and issuing shares at the same share subscription price of its last known funding round.

UrbanClap Technologies, which runs the online marketplace for home services UrbanClap, recently raised about Rs 1.5 crore ($216,540) from former Flipkart chief people officer Mekin Maheshwari and SAB Holdings, an investing company of high net worth investor Anjali Bansal.

In May, the three co-founders of UrbanClap,  Abhiraj Bhal, Varun Khaitan and Raghav Chandra, put in $15.3 million (Rs 107 crore then) as part of a Series D top-up funding.

UrbanClap, founded in 2014, is an online marketplace for a host of local services that include beauty services, appliance and basic home repairs, packers and movers, event management, health and wellness and salon. It recently made forays into newer service verticals including cleaning, pest control and painting.

UrbanClap currently operates in 10 cities in India including Ahmedabad, Bengaluru, Chandigarh, Chennai, Delhi NCR, Hyderabad, Jaipur, Kolkata, Mumbai and  Pune. It recently launched services in Dubai & Abu Dhabi.

The company hopes to increase the number of professionals on its network from 20,000 to more than one million over the next five years, UrbanClap had said earlier this year. 

UrbanClap is also one of the well-funded players in the space, having raised funding from Ratan Tata, Steadview Capital, Vy Capital, Bessemer Venture Partners, Accel and SAIF Partners.

UrbanClap competes with Housejoy, another well-funded player in the home services marketplace segment, and online classifieds company Quikr.