Urban Company: Scaling Up, Empowering Workforce and Eyeing Global Markets

A technology platform that offers a wide range of home services, Urban Company, allows customers to book appointments for services such as beauty treatments, haircuts, massage therapy, cleaning, plumbing, carpentry, appliance repair, painting and more. These services are delivered in the comfort of the customer’s home and at a time of their choosing. The platform is committed to ensuring a high-quality, standardized and reliable service experience. With the current valuation of $2.8 billion, Urban Company turned Unicorn in 2021.

In this article we will explore more about Urban Company, its startup story, founder, business model, revenue model, funding, and more.

Urban Company - Company Highlights

Urban Company - About
Urban Company - Industry
Urban Company - Founders and Team
Urban Company - Startup Story
Urban Company - Mission and Vision
Urban Company - Name, Tagline and Logo
Urban Company - Business Model
Urban Company - Revenue Model
Urban Company - Employees
Urban Company - Challenges Faced
Urban Company - Funding and Investors
Urban Company - Mergers and Acquisitions
Urban Company - Growth
Urban Company - Online and Social Media Presence
Urban Company - Advertisements and Social Media Campaigns
Urban Company - Awards and Achievements
Urban Company - Competitors
Urban Company - Future Plans

Urban Company - About

Urban Company connects skilled and experienced professionals with customers seeking specific services. To achieve this, they work closely with carefully selected service professionals, providing them with technology, training, products, tools, financing, insurance and branding to help them succeed and deliver exceptional service. Their advanced match-making algorithm identifies professionals who best meet the customer’s needs and are available at the preferred time, ensuring a seamless and tailored experience for all users.

Urban Company - Industry

India's tech and service sectors are growing fast, with the IT industry contributing 7.5% to GDP in 2023. The IT and Business Process Management (BPM) sectors have become key economic drivers, and by 2025, IT's GDP share is expected to hit 10%. India, with 76 crore internet users and some of the cheapest rates, is poised for further IT growth, though the digital talent gap may grow 3.5 times by 2026. IT and BPO services account for over 60% of service exports, with a 14% CAGR over two decades.

Urban Company plays a vital role in this boom by leveraging technology, expanding into Tier 2 cities, and driving the gig economy forward through digital innovation and workforce empowerment.

Urban Company - Founders and Team

Abhiraj Singh Bhal

Abhiraj Singh Bhal, co-founder and CEO of Urban Company, plays a pivotal role in overseeing the company's operations and managing the onboarding process for service providers. His leadership has helped scale the platform into a dominant force in the home services market across Asia.

Abhiraj has earned several prestigious accolades, including being named in Fortune's 40 Under 40 and Fortune's 30 Under 30, as well as receiving the Entrepreneur Award at NTLF 2020.

On a personal note, Abhiraj comes from a family of high achievers. His father, Commodore Ashok Bhal, is a retired naval officer who specialized in electrical engineering at IIT Roorkee before serving in the Indian Navy, focusing on weapon systems. Now settled in Visakhapatnam, his father’s career has been a source of inspiration.

Outside of work, Abhiraj enjoys staying active through marathons, skydiving, and scuba diving. He also loves cooking, especially preparing his wife Urvi’s favorite dishes—a passion that allows him to unwind and connect with family.

Urban Company - Startup Story

Abhiraj Singh Bhal, Co-Founder and CEO of Urban Company (formerly UrbanClap), has an impressive journey from his early years in Mumbai to leading Asia’s largest home services marketplace.

He completed his schooling at Navy Children’s School in Mumbai before moving to Visakhapatnam for the later part of his education. Abhiraj holds a Bachelor's degree in Technology from IIT-Kanpur and an MBA from IIM Ahmedabad.

Post-MBA, Abhiraj joined the Boston Consulting Group (BCG) in Singapore as a consultant, advising Fortune 500 companies across India, Germany, and Southeast Asia. After spending over three years at BCG, Abhiraj returned to India and launched a movie streaming venture called Cinema Box with Varun Khaitan, a batchmate from IIT-Kanpur who was also working with BCG in the U.S. The service allowed users to stream movies on smartphones via Wi-Fi while traveling.

Around this time, they connected with Raghav Chandra, a computer science graduate from the University of California, Berkeley, who was working on an auto-rickshaw aggregator startup called Buggy.in. Although initially dismissive of each other’s ventures, the three entrepreneurs eventually shifted their focus to the home services market after recognizing its highly fragmented and unorganized nature in India.

The trio began by personally searching for service professionals like beauticians, plumbers, and photographers, connecting them to friends and families. They tested the concept within social circles and FB groups, identifying people looking for such services. This led to the creation of UrbanClap (now Urban Company) in 2014. Their first investment was a modest INR 4,000 on Facebook ads to test the platform.

Initially, they bootstrapped the business before raising $1.6 million in funding from Accel Partners and SAIF Partners, propelling Urban Company into the fast-growing home services space.

Urban Company - Mission and Vision

Their vision is to empower millions of professionals worldwide to provide home services in a way that has never been experienced before.

Partner Empowerment

Urban Company has put in significant effort to create a support system that empowers its service partners. While enabling them to operate as independent micro-entrepreneurs, the platform also offers a protective framework. On average, these partners earn between Rs 280 and 300 per hour after covering commissions, fees and all related product and travel expenses.

Additionally, every service partner is provided with life and accidental insurance, free training, access to loans and essential resources like PPE kits and vaccinations. Many partners also benefit from free health insurance, ensuring they are well-supported on both a professional and personal level.

Urban Company operates on the belief that both customers and service partners are equal stakeholders. The company was founded to bring organization and transparency to the home services industry, benefiting everyone involved. Before Urban Company, the market was largely controlled by middlemen and aggregators who limited access and took a big portion of the profits. By cutting out these intermediaries, Urban Company has opened up opportunities for independent workers and given them a stronger voice in the industry.

Urban Company's commitment to its partners has been consistent and unwavering, both before and during the pandemic. They’ve supported their partners through difficult times and will continue to do so, ensuring that they have the tools and resources needed to succeed.

Urban Company - Name, Tagline and Logo

Since the digital world is embracing flat design, a trend that's being adopted by some of the biggest brands, this shift simplifies design elements, moving away from the heavily textured styles of the past. Flat design helps bridge the gap between the physical and digital worlds, offering users familiar, real-world visual cues to navigate online. Urban Company has always aimed to encourage users to seek online solutions for their problems, positioning the digital space as the go-to choice over traditional offline methods. In exactly this way, they created an ideal logo that envelopes all these vital points!

Urban Company - Business Model

Fixed Fee Services

For services like plumbing and electrical repairs, payments are processed through the app. The company takes a percentage of the payment as their fee, then transfers the rest to the hired service provider.

No-Fee Upfront Services

Here, the company invests in generating leads and listing service providers, without charging customers upfront. Instead, service experts pay a fee to accept and confirm a job request. If they successfully close the deal with the customer, the service is monetized.

Customers are offered five service provider options to choose from. If a provider isn’t selected, they receive credit towards future opportunities. The more effective the algorithm, the less effort the customer has to put in to find the right service.

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Urban Company - Revenue Model

Revenue through Commissions

Urban Company's primary revenue source, making up 85% of its earnings, comes from a commission-based model tied to a subscription. Service providers are charged a percentage of the service fee for each task they complete. This system ensures that users receive quick and dependable service, while providers are compensated based on their workload. The commission rate varies depending on the type of service, allowing Urban Company to scale its income as the volume of completed jobs grows.

Bid-Based Model for Professionals

For specialists like photographers, interior designers, and yoga instructors, Urban Company operates a bid-like system. Instead of customers immediately booking services, professionals pay a fee to access and bid on leads. Their success in generating revenue depends on their ability to win over customers after being introduced through the platform. The algorithm presents users with five options, and if a professional is not chosen, their bid fee is reimbursed. The better the algorithm, the less effort is required from users to find the right expert.

Generating Leads

Lead generation is another way Urban Company generates income. Users describe their service needs, and experts either contact them directly or are approached by the clients themselves. Professionals are charged for these leads, effectively paying to be introduced to potential customers, creating an ecosystem where clients can easily find the services they require.

Income from Advertising

Beyond commissions and lead generation, Urban Company also makes money through advertisements. Service providers and businesses pay to promote their offerings on the platform, boosting their visibility in return for advertising fees. This strategy adds another revenue stream while enhancing the exposure of service providers to a wider audience.

Urban Company - Employees

Urban Company has between 1,000 and 5,000 employees in India and around the world. This team helps provide quality home services in many places, showing the company's growth and commitment to its customers.

Urban Company - Challenges Faced

Revenue Streams and Profitability

Urban Company doesn’t rush into defining its business model and unit economics. Instead, they focus on validating customer behavior and product-market fit first. Scaling isn’t about just gaining users or raising funds; it’s about ensuring key metrics like acquisition costs, operational expenses, and transaction revenue are positive. They believe growth must be built on a solid economic foundation.

A major challenge for Urban Company is managing diverse service categories with unique requirements. CEO Bahl highlights pricing as particularly difficult since costs aren’t always clear upfront. To solve this, Urban Company develops all its technology in-house, with 100 engineers building systems that integrate pricing, fulfillment, and finance. Their advanced tech, powered by machine learning, ensures smooth operations across inventory, service delivery, and pricing.

Customer-Centric Solutions and Market Niche

Urban Company takes a careful approach to product-market fit, knowing that rapid growth without solid unit economics can lead to failure. Instead of rushing to scale, they focus on refining their product to meet market demand before expanding aggressively.

A unique challenge they face is the matchmaking process. Unlike on-demand services like food delivery, Urban Company deals with scheduled services, where customers book in advance. The key is predicting when customers will need services and pairing them with the right professional at the right time. Their tech, powered by predictive engines, ensures smooth coordination between customers and service providers.

Hiring and Team Dynamics

Urban Company takes pride in its meticulous approach to hiring and team building, knowing that a strong team is essential for growth. In a market where perks often overshadow company values, they prioritize aligning talent with their core mission. As Urban Company continues to scale, they ensure that every team member grows with the company. Clear communication channels and a shared vision are critical to this process.

Additionally, Urban Company’s commitment to technological innovation is evident in the way they manage their platform. Their systems don’t just handle customer-facing functions; they also support internal operations like training, fulfillment, and inventory management. For example, the company’s predictive engines monitor the inventory that professionals use, from cosmetics to spare parts, and notify them when supplies are running low. This level of automation and intelligence reduces the manual effort required and keeps operations running efficiently, allowing Urban Company to stay focused on delivering high-quality service.

By integrating advanced technology into their business model, Urban Company ensures that their platform continues to evolve and meet the needs of both customers and service professionals. This forward-thinking approach helps them address challenges proactively, allowing them to build a sustainable, scalable business.

Urban Company - Funding and Investors

Urban Company has garnered support from 22 institutional investors, including Accel, Elevation Capital, Trifecta Capital.

Urban Company has attracted investment from Kalyan Krishnamurthy and 11 other angel investors.

Urban Company was valued at $2 billion after it raised a $188-million round led by Prosus Ventures in 2021 in a Series F round. Urban Company has raised a total of $508.9 million in funding over 13 rounds. Their latest funding was raised on Jul 17, 2024 from a Secondary Market round.

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Urban Company - Mergers and Acquisitions

Urban Company has expanded its reach through three key acquisitions across three different countries. The most active year for these takeovers was 2016, when the company added two new businesses to its portfolio. While their acquisitions span multiple regions, Australia and India are the primary hotspots where they’ve focused their growth.

A lot of Urban Company's deals center around the Local Services and Beauty Tech sectors, aligning perfectly with their core services. Their latest acquisition? Glamazon—a web and mobile platform offering at-home beauty services. Founded in 2013 in Bondi, Glamazon became part of the Urban Company family in March 2020.

Urban Company - Growth

Urban Company has been on quite a growth journey! Their revenue from operations shot up by 45%, climbing from INR 438 crore in FY22 to INR 637 crore in FY23. But it’s not just about bigger numbers—they’ve also been working hard on improving profitability. By getting smarter with their fixed costs and boosting overall efficiency, they’ve significantly reduced their losses. In FY22, they were looking at a loss of INR 514 crore, but by FY23, they managed to cut it down to INR 308 crore It’s clear they’re heading in the right direction financially!

Urban Company - Online and Social Media Presence

Urban Company is all about creating brand love and awareness by tapping into conversations and cultural events that bring people together. Their approach to Instagram, YouTube and Twitter (now X) is tailored specifically for each platform, giving them a unique edge in engaging with a wide range of audiences.

In January 2020, they rebranded from UrbanClap to Urban Company, signaling their ambition to become a global gig marketplace with a diverse range of services under one roof.

With a strong marketing strategy, they’ve been rolling out content that aligns with their vision—like the #UrbanCompanyImpact or #UCImpact campaigns. One of their latest initiatives is a content series called ‘Urban Company Impact,’ offering a behind-the-scenes look into the lives of the professionals who visit your homes, delivering the services you depend on. It's a personal and powerful way to connect with the brand!

Urban Company - Advertisements and Social Media Campaigns

Urban Company has taken a bold step in challenging the way we view the divide between white-collar and blue-collar workers in India. Over the past year, they’ve been addressing this issue head-on through a series of thought-provoking films. Following Chhota Kaam and Chhoti Soch, their latest release, Dignity of Labour, dives into the often overlooked but deeply ingrained bias against manual labor. The film revolves around a heartfelt exchange between a father and his daughter, sparking a conversation on the importance of respect for all types of work, regardless of the uniform worn.

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Urban Company - Awards and Achievements

At the ET Startup Awards 2021, Urban Company took home the prestigious Covid-led Business Transformation award.

Urban Company - Competitors

Some of the main competitors of Urban Company are as below:

• Concord Services in home appliances repair category
• Urban Service Plaza in AC, Fridge and other appliances service
• Housejoy, which a home service platform
• Busy Bucket Services which provides cleaning services

Urban Company - Future Plans

• #FutureFemaleForward
  Urban Company has ambitious plans for the future, with a strong focus on empowering women in the workforce.

Our first goal is to have 5 lakh service partners, with 2 lakh of them being women," says Abhiraj Singh Bhal, Co-Founder and CEO of Urban Company.

This highlights the company's commitment to gender diversity and inclusion.

• Urban Company is also turning its attention to India’s Tier 2 markets, where it has already expanded into 40 cities with promising results. Bhal shared that these cities, where they've launched in recent years, have shown impressive growth, prompting the company to deepen its presence in these regions.
• On the international front, Urban Company is close to announcing a joint venture in Saudi Arabia, marking a significant milestone in its global expansion plans. As for going public, Bhal noted that while internal preparations for an IPO are underway, the company is waiting for the right time and has not set a definitive timeline for entering the public markets.

FAQs

What does Urban Company do?

Urban Company connects skilled and experienced professionals with customers seeking specific services. To achieve this, they work closely with carefully selected service professionals, providing them with technology, training, products, tools, financing, insurance and branding to help them succeed and deliver exceptional service.

Who is the owner of Urban Company?

Abhiraj Singh Bhal is the founder and CEO of Urban Company.

When was Urban Company founded?

Headquartered in Gurugram, Urban Company was founded on 10th November 2014.

What is Urban Company revenue?

Urban Company's revenue from operations shot up by 45%, climbing from INR 438 crore in FY22 to INR 637 crore in FY23.

What is Urban Company Net worth?

Urban Company net worth is $2.8 billion (2024).