Indian Gig Marketplace Urban Company raises $225 million from Prosus Ventures & Others

Urban Company, a home services marketplace, has raised $255 million in Series F funding. The startup is also considering a public listing between 18 and 24 months.

Urban Company (formerly Urban Clap) is an Indian gig marketplace that provides home installation, maintenance, and repair services, as well as home beauty and wellness services.

Prosus Ventures, Dragoneer, and Wellington Management led the Series F round, with participation from Vy Capital, Tiger Global, and Steadview. Urban Company is now worth $2.1 billion as a result of this latest investment. The most recent round includes a $188 million primary capital infusion and a secondary sale of approximately $67 million by select angels and early investors.

Including this round, the company has raised $330 million to date, with nine investors and a few angel investors participating.

The new investment will be used for innovation, training, product development, improved quality control, and safety measures for both partners and consumers.

Arun Khaitan, co-founder, Urban Company told that the company plans to take it public over the next 18-24 months. “It is very much possible that we go straight to that step from here (after this funding) depending on markets conditions at that time,” Khaitan said. He also added that the company is looking at all the options as far as listing overseas or in the domestic market.

Khaitan stated that the startup will focus more on training its partners, which could increase from 35,000 to around 3 lakh. It will also strengthen its engineering team and expand its services to a number of other countries. The company intends to broaden its service portfolio to include home interiors, nursing staff, and even cooks.

The company, which was founded in 2014, also intends to expand its geographic footprint by entering the top 100 cities in India and entering international markets. “With this funding, we plan to rapidly scale our business while continuing to invest further in the safety of our consumers and service partners, training of partners and product development,” Urban Company CEO and Co-Founder Abhiraj Singh Bhal said.

“Urban Company is disrupting a large, fragmented industry that has seen low digital adoption until now. Through their technology-enabled platform and keen focus on providing high-quality, trained service partners, Urban Company has been able to achieve the very difficult task of productizing services,” said Ashutosh Sharma, Head of Investment for India, Prosus Ventures.

In FY20, home maintenance and repair services accounted for 45 percent of total revenue, while beauty and wellness services accounted for 55 percent. In March 2020, the company served 22 locations in and outside of India, had a network of 25,000 professionals, and performed 800,000 service tasks per month.