Urban Company Raises $255M at $2.1B Valuation

Urban Company Secures $255 Million, Achieving $2.1 Billion Valuation

Home service provider Urban Company announced on Wednesday a new funding round of $255 million. This investment confirms the company’s valuation at $2.1 billion, adding it to the growing list of Indian startups reaching unicorn status this year.

Details of the Series F Funding

The Series F financing round was spearheaded by Prosus Ventures, Dragoneer, and Wellington Management. Participation also came from Vy Capital, Tiger Global, and Steadview. The company, based in Gurgaon, clarified that the funding includes $188 million in primary capital, with the remainder stemming from a secondary sale by select early investors and angel stakeholders.

To date, Urban Company has successfully raised approximately $470 million in funding.

A Wide Range of Home Services

Originally known as UrbanClap, the company has been operating for seven years, offering a diverse array of home services through its platform. Do you require air conditioning repairs? Is your television malfunctioning? Perhaps your home needs repainting, or you're experiencing plumbing difficulties?

Urban Company also provides services like toilet cleaning and disinfection, as well as the convenience of receiving a haircut in your preferred location.

Customers can easily request these services via the company’s application or website, selecting a convenient time and location for service delivery.

The Genesis of Urban Company

The concept for the startup originated with its three founders, who, in their early twenties, questioned the lack of organized efforts within the largely fragmented home services industry. Raghav Chandra, a co-founder, shared this insight in an interview with TechCrunch.

What began as a simple idea has now evolved into a highly valued unicorn.

Global Expansion and Service Network

Currently, the startup functions in 35 cities across India, Singapore, Australia, the UAE, and Saudi Arabia. According to Chandra, who also serves as Urban Company’s Chief Technology Officer, over 35,000 service professionals are actively engaged on the platform.

Industry Disruption and Digital Adoption

“Urban Company is fundamentally changing a sizable, fragmented sector that has historically experienced limited digital integration,” stated Ashutosh Sharma, Head of Investment for India at Prosus Ventures.

Through its technology-driven platform and a strong commitment to delivering high-quality, well-trained service providers, Urban Company has successfully achieved the challenging task of standardizing service offerings. Sharma added, “Furthermore, the promising initial results from international expansion in familiar markets are encouraging and suggest substantial future growth potential.”

Navigating the Challenges of the Pandemic

The startup’s rapid growth faced a temporary setback last year due to the nationwide lockdown in India implemented to control the spread of COVID-19. Chandra explained that the company began to recover as the nation reopened and experienced its most successful month to date in March of this year.

Future Plans and IPO Aspirations

The newly acquired capital will be utilized to further expand operations in existing markets and enhance the onboarding, training, and safety protocols for service workers on the platform. The company is also focused on strengthening its technology team.

Urban Company intends to file for an Initial Public Offering (IPO) within the next 24 months.

Investing in Service Worker Development

Chandra emphasized that Urban Company invests significant time in training and upskilling its service workers. The platform also facilitates cross-training, enabling professionals specializing in one area to acquire skills in others, thereby increasing their opportunities for work and income.

Continued investment in upskilling programs for service workers will remain a key priority as the startup continues to grow.

*The fundraise was initially disclosed in a regulatory filing in April, but co-founder and CEO Abhiraj Singh Bhal refrained from commenting at the time due to the escalating COVID-19 cases in the country.