Urban Company raises $190 mn at $2-bn valuation, joins unicorn club


Urban Company, India and UAE’s largest tech-enabled home services and products marketplace, has raised $190 million from investors led by Prosus (previously Naspers). The underwriting has more than doubled the Gurugram-based company’s valuation to $2 billion. In 2019, the firm was once valued at $933 million after a underwriting round, led by Tiger Global. Urban Company has now turn out to be a unicorn, a startup valued at more than $1 billion.

Urban Company has allotted 2,163 fairness shares of Rs 1 every at a premium of Rs 2,65,552.10 every and 50,490 Series F compulsorily convertible cumulative preference shares (Series F CCPS) of Rs 10 every at a premium of Rs 2,65,543.10 every in the company on a preferential basis, aggregating to Rs 1,410.2 crore or $190 million, show regulatory documents sourced from the commerce intelligence platform Tofler.

But even so Prosus, the other investors include DF International and Wellington Management.

Founded in November 2014 by Abhiraj Bhal, Varun Khaitan and Raghav Chandra, Urban Company (previously UrbanClap) is the largest home services and products company in India and the UAE. It offers services and products like beauty and spa at home, cleaning, plumbing, carpentry, appliance repair and portray through its mobile app and website.

It has a partner network of over 30,000 hand-picked service professionals and operates in 18 cities of India, but even so four international markets of Dubai, Abu Dhabi, Sydney and Singapore.

Urban Company could also be backed by investors such as Accel Partners, Ratan Tata, and Flipkart CEO Kalyan Krishnamurthy.

India is fast emerging as a startup nation. In around a decade, the Indian startup ecosystem has scaled to turn out to be the third-largest start hub on the earth followed by america and China. The affluent and vibrant startup ecosystem is working to spice up the investment surroundings in India both from domestic and global investors, according to management consulting firm Praxis Global Alliance.

Urban Company has turn out to be the 13th Indian startup to turn out to be a unicorn in 2021. A few of these firms include Chargebee, Gupshup, ShareChat, Groww, Pharmeasy, Cred and Meesho.

Urban Company saw its complete income nearly doubling to Rs 263.07 crore in the financial year 2020 from Rs 132.04 crore in the financial year 2019, according to the regulatory documents. Its loss was once at Rs 155.17 crore in the financial year 2020 as against a loss of Rs 78.48 crore in the preceding fiscal.

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