Urban company turns unicorn, valued at $2 billion

The firm’s revenue from operations increased to Rs 218.64 crore in FY20 on a consolidated basis from Rs 108.96 crore in FY19. Total losses shot up to Rs 155.17 crore in FY20 from Rs 78.48 crore in the previous year.

Urban Company has raised a fresh $188 million (Rs 1,410.16 crore) in funding from a clutch of investors led by Prosus Ventures (formerly Naspers), according to the company’s filings with the RoC sourced from business intelligence platform Tofler.

The investment is understood to have valued the nearly seven-year old start-up at close to $2 billion, making it the latest entrant to India’s uniorn club.

The company is believed to have hit a valuation of over $900 million August 2019 when it raised about $75 million in a round of funding led by Tiger Global Management. With this, the tally of unicorns in the country goes up to 12 so far this year. Urban Company did not comment on the funding.

In all, the company has raised close to $400 million from investors. The latest financial round also saw participation from DF International Partners, Wellington Management, Tiger Global, Steadview Capital and Vy Capital.

The company operates an online marketplace for urban lifestyle services offering a mobile application and a website for finding and hiring services such as home service and repair, beauty and wellness services, lessons and hobbies, event and wedding services, business services, personal services.

With the pandemic restricting movement, the demand for such services has increased. The firm claims it has more than five million customers and 25,000 trained professionals registered on the platform. It operates in 30 cities, including places like Patna, Raipur, Bhopal and Vijaywada and also in Abu Dhabi, Dubai, Riyadh, Sharjah, Singapore and Sydney.

The firm’s revenue from operations increased to Rs 218.64 crore in FY20 on a consolidated basis from Rs 108.96 crore in FY19. Total losses shot up to Rs 155.17 crore in FY20 from Rs 78.48 crore in the previous year.

Indian start-ups have been on a fund-raising spree. Eleven startups including Meesho, ShareChat, Groww, Cred and PharmEasy turned unicorns earlier this year.