Kunal Bahl and Rohit Bansal Exit Urban Company with 200x Return on Investment
According to media reports as of July 19, 2024, Kunal Bahl and Rohit Bansal, now running Titan Capital and co-founders of Snapdeal, received an incredible 200 times return on their investment before exiting the Urban Company platform.
After investing INR 57 lakh in 2015, Bansal and Bahl finally got their money back from the seed cheque they wrote a decade ago. The reports state that the proceeds from this investment amounted to INR 111 crore after their withdrawal.
Titan Capital has stated that they want to reinvest 100% of Urban Company's profits in their next group of entrepreneurs. Through their investment vehicle Titan Capital, the Snapdeal founders have provided seed funding to over 200 new businesses.
In his LinkedIn post, Bahl stated, We have mixed feelings about exiting the business as an investor, but do so with only the best wishes for the company to continue to go from strength to strength, which I am 100% certain it will.
Who is the New Player Joining the Urban Company?
Dharna Capital, a subsidiary of Vy Capital, purchased the partners' shares in the Gurguram-based company for $50 million in a secondary transaction. Dharana Capital's founder and managing partner Vamsi Duvvuri will be joining the board of directors of Urban Company as a non-executive director.
As a component of their secondary transaction, a few workers had also sold their stock options.
What is the Current Financial Status of Urban Company?
According to Bahl, the company is anticipated to achieve profitability in FY25, after recording a profit before taxes and revenue of INR 282-283 crore for the April-June quarter of this year.
Revenue from operations increased 45% year over year to INR 637 crore in FY23. Compared to FY22, when it lost INR 514 crore, it lost just INR 308 crore this year.
The firm has not yet submitted its financial accounts for the fiscal year ending in March 2024.
About Urban Company
Technology-based Urban Company provides in-home services. Haircuts, massage therapy, painting, repairing, and other beauty services are all part of this package. According to their website, the organisation employs more than 45,000 skilled workers who provide their services in 103 cities across four nations. The company was founded in 2014 by Varun Khaitan, Raghav Chandra, and Abhiraj Bhal.
About Titan Capital
The company's website indicates that it has recently invested in 91Trucks, consumer brand Boba Bhai, and software service Simplismart, among other companies. Popular firms that have been featured in Titan Capital's portfolio include Giva Jewellery, RazorPay, and Ola Cabs. The twenty-plus industries that the firm claims to have invested in include consumer tech, B2B service, fintech, and many more.
Muskaan Kapoor
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