Urban Company Records 45% Revenue Surge and Strong Profitability in FY 2023

• ByStartupStory     |    August 19, 2023

Urban Company, a services marketplace, has reported a substantial 45% increase in revenue from operations on a consolidated basis for the fiscal year 2023, compared to the previous year. The company’s revenue from operations reached Rs 637 crore, a notable rise from the Rs 438 crore earned in the prior fiscal year. The Gurugram-based startup, known for matching customer demands with registered professionals for services like salons and home-related tasks, has managed to reduce its losses by nearly 40% to Rs 308 crore on a consolidated basis during FY 2023.

This growth in revenue is attributed to an increase in the net transaction value, which amounted to Rs 2,176 crore in FY 2023, compared to Rs 1,581 crore in FY 2022. Despite these gains, Urban Company observed a marginal rise in costs, including employee expenses and direct and support costs, during FY 2023. The company, valued at $2.18 billion in its last funding round in August 2021, has raised a total of $470 million across various funding rounds since its founding in 2014.

Additionally, Urban Company achieved EBITDA breakeven for its Indian operations on an adjusted level for the first quarter of 2024. The company emphasized its focus on improving profitability for both its India business and the overall entity, highlighting strong unit economics and cost control measures.

Urban Company also expanded its board by adding three independent board members: Dr. Ashish Gupta, co-founder of Helion Advisors; Ireena Vittal, former Partner at McKinsey and Co; and Shyamal Mukherjee, former chairman of PricewaterhouseCoopers.

The platform has consistently improved its average customer ratings, maintaining an average of 4.8 out of 5 in FY 2023. Over 17 million services received 5-star ratings from customers during this period. Notably, the contribution of repeat customers to net transaction value increased, with 77% of the value coming from repeat users in FY 2023, up from 72% in the previous fiscal year.

Amid reports of protests by service professionals demanding better commission rates, Urban Company stated that the top 20% of professionals earned an average of Rs 40,000 per month on the platform, after accounting for all commissions and related costs, in the first half of the calendar year 2023.

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