Urban Company, an at-home services platform, reported a significant 30% increase in net revenue, reaching Rs 827 crore for the fiscal year ending March 31, 2024. The company’s loss before tax also narrowed considerably to Rs 93 crore from Rs 312 crore in FY23, as detailed in its annual business summary.
In the first quarter of the current fiscal year (April-June), Urban Company recorded a revenue of Rs 281 crore and a profit before tax of Rs 12 crore. The company attributed this growth to strategic investments in service quality, partner training and enablement, technological advancements, and the launch of its ‘Native’ RO water purifier devices. Operational leverage and efficiency improvements also contributed to enhanced profitability.
Despite these gains, Urban Company’s operating earnings before interest, taxes, depreciation, and amortization (EBITDA) on a consolidated level declined to Rs 116 crore from Rs 297 crore in the previous fiscal year.
The launch of the ‘Native’ water purifiers has shown promising results, with the annualized net revenue from this range hitting Rs 96 crore in the first quarter of FY25. Founded in 2014, Urban Company operates primarily in the beauty and wellness sector, offering services such as salon and spa treatments and laser hair reduction, as well as in home repairs and maintenance, which includes plumbing, electrical work, carpentry, cleaning, pest control, appliance repair, and painting.
Urban Company, backed by Prosus Ventures and Accel, is processing an average of 2.2 million monthly orders with an average order value of Rs 1,290. Recently, Kunal Bahl and Rohit Bansal, founders of Snapdeal and Titan Capital, exited Urban Company, selling their stake to Dharana Capital for a substantial return. Dharana Capital, a subsidiary of Vy Capital, made a $50 million secondary transaction, highlighting the continued investor interest in Urban Company’s growth trajectory.
