Indian Gig Marketplace Urban Company raises $190 Million & Enters the Unicorn Club
The transaction values the firm at $2 billion, more than double its previous value. It was priced at $933 million in its most recent funding round, led by Tiger Global in 2019. As a result, Urban Company is the most recent Indian startup to join the elite unicorn group.
The round also saw the participation of Tiger, Steadview Capital, Vy Capital, and others. So far, the company has raised $370 million in venture funding from investors in several rounds. Bessemer India, Elevation Capital, and Accel India are among its other early investors.
Prosus has spent $61.93 million, DF International $37 million, and Wellington Management has invested $33.2 million, giving them a 3.18 percent, 1.90 percent, and 1.7 percent interest, respectively, according to the filings.
According to the records, Urban Company issued 2,613 equity shares and 50,490 Series F preference shares for a total of $190 million at an issue price of Rs 265,553.1 per share (Rs 1,410.2 crore).
The three founders, Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chandra, will each own 8.22% of the company after the purchase. Elevation Capital (formerly Saif Partners) will own 14.56 percent of the company, with Accel India owning 14.40 percent.
Urban Company is an Indian gig marketplace that provides services such as home installation, maintenance, and repair, as well as home beauty and wellness. The Gurugram-based firm, which was established in 2014, is a home services provider with a presence across India. It has also expanded internationally, to Australia, Singapore, Dubai, and Abu Dhabi, among others.
The company's business has steadily grown since it rebranded (it was formerly known as UrbanClap).
In fiscal 2020, Urban Company produced revenue of around Rs 216 crore, up from Rs 106 crore in fiscal 2019. According to its filings, it lost Rs 137.8 crore in FY20.
The company announced on April 6 that it would cover the cost of Covid-19 vaccinations for its over 30,000 service partners. It also stated that over the next few months, it will work with local government authorities and healthcare providers to ensure that its service partners are completely vaccinated.