Urban Company says higher transactions on platform doubled FY20 revenue
Home services provider Urban Company, formerly known as UrbanClap, has doubled its topline growth for the financial year ended March 31, 2020.
The New Delhi-based company posted a 103% increase in revenue from operations to Rs 216 crore in FY20, from Rs 106 crore in the previous year.
A surge in the number of transactions on the platform resulted in higher commission income, it said in a statement.
The net booking value of all transactions through the platform grew 138% to Rs 918 crore in FY20 from Rs 385 crore a year ago.
Of the total, the firm garnered 55% of its revenue from the beauty and wellness verticals. This is likely to be the result of the company’s change in strategy, which reportedly came into effect in October. It said it would focus on the two segments, while shutting down all non-core operations such as wedding services and photography.
During the year, Urban Company started operations in Australia and Abu Dhabi in the United Arab Emirates (UAE), in addition to its existing presence in Dubai.
Separately, the firm said it has put in place several safety protocols in view of the Covid-19 pandemic. Employees are expected to use face masks and hand gloves, undergo daily temperature checks and download the Aarogya Setu app, it said.
The startup has temporarily ceased some operations due to the lockdown, although home repair and maintenance segments have resumed business. As per the government mandate, barbers and beauticians are not allowed to restart work yet.
Read: Coronavirus India LIVE updates
“Over 70 lakh people earn their livelihood through the beauty and wellness industry, many of whom are single breadwinners. Services at home are delivered in a one-to-one format and minimise congregation. This would be similar to the restaurant industry, which has been allowed to deliver food at home while dine-in operations remain suspended,” Abhiraj Bhal, co-founder of Urban Company, said.
Bhal set up the company in November 2014 with Varun Khaitan and Raghav Chandra. The online marketplace provides services from beauticians, cleaners, plumbers, carpenters and appliance repairmen. It claims to have over 30,000 partner-professionals registered on its platform across 22 cities, of which over 10,000 are beauticians and barbers.
Earlier this year, the firm rebranded itself as Urban Company and converted its verticals into sub-brands. The startup aims to become a horizontal gig marketplace with a global footprint across categories.
As of August 2019, Urban Company was valued at close to $1 billion in a funding round where it raised $75 million, led by Tiger Global Management. The firm is also backed by investors such as Bessemer Venture Partners,Trifecta Capital, Accel, Eight Road Ventures India and Vy Capital.