Startup
Urban Company narrows FY24 losses to Rs 93 Cr
Services marketplace ‘s loss before tax narrowed to Rs 93 crore in financial year 2023-24, down 70% y-o-y compared to Rs 312 crore it clocked a year ago due to operational costs to improve its bottomline.
The platform, which offers on-demand services across home repair and renovation and beauty and salon categories, clocked 29.8% in net revenue to Rs 827 crore in the financial year ended March 31, 2024, as compared to Rs 637 crore in the previous financial year.
“This growth was achieved on the back of investments in service quality, partner training and enablement, technology development and the launch of Native RO water purifier devices,“ Urban Company said in a blog post.
Abhiraj Singh Bhal-led UC ventured into the water purifier industry in October 2023 with the launch of Native, its domestically produced range of water purifiers that do not require servicing for two years. It also launched wall panel solutions under its home decor verticals that includes painting and other services.
Its Indian segment, largest by a huge margin, accounted for 89% of net revenue with Rs 738 crore during FY24. The segment clocked a loss of Rs 21 crore in FY24 from Rs 177 crore it had reported a year ago. The UC platform is also available in the UAE, Saudi Arabia, and Singapore markets.
However, the Gurugram-based company managed to clock a profitable quarter with a profit before tax (PBT) of Rs 12 crore on net revenue of Rs 281 crore during the first quarter of the current fiscal year as it tries to move for a public listing in 2025.
UC also released its earning index, which shows earnings of gog workers associated with the platform. The company claimed that the average monthly net earnings of service partners delivering more than 30 services/ month was Rs 33,469, while its top 20% partners, in terms of ratings, took home as much as Rs 42,792 net of all commissions, fees, travel and product costs.
Founded by Bhal, Raghav Chandra, and Varun Khaitan in 2014, the company last raised $190 million in a Series F round of funding in 2021.