Urban Company, formerly known as UrbanClap, joined the Unicorn Club after their last series of fundraising boosted their valuation to $2 Billion. The on-demand home service provider has also seen a significant jump in its revenue during FY2020.
Urban Company- About The Company
Founded in 2014 by Abhiraj Bahl, Raghav Chandra and Varun Khaitan, the company offers app-based home services. It is currently providing its services in over 30 cities in India as well as abroad, including places like UAE and Singapore.
The company is one among a slew of startups that connects clients at home to professionals such as plumbers, cleaning services, carpenters, beauticians and any other services that you may require. However, it is the only company that has achieved this level of success.
Urban Company helps to connect professionals in the household utility field to clients who are in need. It is a convenient way for users to connect with these people and avail their services. The company charges a commission from the users, which is their main source of income.
The Business Model
With the public confined to their homes due to Covid, there was bound to be a surge in demand for services at home. Though digital services saw a surge across the board, Urban Company was at a unique point where they could attract a customer base that was not part of their regulars. This was especially seen in the home services sector.
As of January, the company has seen a 150% rise in usage. The high investment in hiring more professionals and training the staff on hygiene and Covid-19 safety protocols seem to have paid off. While the traditional user was a high-income progressive client in metro cities, the new normal has also gotten older, more traditional people involved in the user pool as well. The requests range from labour oriented fields like plumbing and carpentry to services like haircuts, massages and other treatments. This has also allowed them to supply this labour force with consistent work and wages and modernize their traditional fields.
Urban Company- The Growth Curve
Leveraging the growing demand has worked wonders for the company. Their latest investment round saw a surge in funding, at $190 million gained. This round is led by Prosus, alongside Tiger Global, Steadview Capital and Vy Capital. This round has enabled the firm to reach a valuation of $2 billion, over double that of previous rounds.
Urban Company plans to use this new funding to expand their services by leveraging Data, as well as creating a system to keep the supply of labour growing with demand. By using Data Analytics, they can deliver quality services as well as assistance in a more consistent and standardized fashion. They also recognize the need of working with the labour supply force. To scale up their operations, they also need to bring more professionals into the fold, as well as train and create more capable professionals.
As the demand for at-home services surges due to the new normal, Urban Company looks to capitalize on this situation with their new backing to enable their efforts. By boosting their labour force and quality while leveraging data to help their customers avail better services, they aim to disrupt the traditional trade sector for the better.