Urban Company raises $188 million in growth round led by Prosus

On-demand home services marketplace Urban Company has raised $188 million (Rs 1,410 crore) in a growth funding round led by Prosus, the Euronext listed entity that holds South African conglomerate Naspers’ international internet assets.

Dubai-based Vy Capital, alternative investments firms Steadview Capital and Tiger Global Management, DF International Partners, and Boston-based Wellington Management participated in the round, regulatory filings from Urban Company parent UrbanClap Technologies showed.

Prosus committed $62.2 million to the round. Vy Capital put in $30 million, Steadview contributed $10.3 million, Tiger Global invested 14.8 million, Wellington put in $33.3 million, and DF International infused a total of $37 million through its two funds. 

Urban Company was valued at close to $1 billion in August 2019 when it raised $75 million in a round led by Tiger Global. The firm is also backed by investors such as Bessemer Venture Partners, Trifecta Capital, Accel, and Eight Road Ventures India.

The valuation, following the latest infusion, could not be immediately ascertained. Earlier today, an Economic Times report put the valuation at $2 billion.

Email queries to Urban Company went unanswered at press time. 

Recently, the company also told the Ministry of Corporate Affairs that it had created additional employee stock ownership options (ESOP) for future issuance. 

Urban Company was founded in 2014 by Abhiraj Singh Bhal, Varun Khaitan and Raghav Chandra. The online marketplace provides a range of services from personal care to plumbing to home repairs. 

Earlier in 2020, it rebranded from UrbanClap to Urban Company and converted its verticals into sub-brands, with the aim of becoming a horizontal services marketplace with a global footprint across categories.   

The company reported a 99% growth in consolidated revenues for the financial year ended March 2020. Its total revenues rose to Rs 263.1 crore, from Rs 132.1 crore a year earlier. Total expenses increased to Rs 418.3 crore, from Rs 210.5 crore year-on-year -- as a result of which losses in the reporting period widened to Rs 155.8 crore. 

TechCircle had reported the unaudited earnings in May this year.  

During the fiscal, Urban Company started operations in Australia and Abu Dhabi in the United Arab Emirates (UAE), in addition to its existing presence in Dubai. 

On a standalone basis, Urban Company reported total revenues at Rs 256.4 crore, up 95% from a year ago. Losses widened by 88% to Rs 138.5 crore.