Urban Company, the leading marketplace for home services, has seen a remarkable recovery in FY24 at the financial level. It reported operational revenue of Rs 827 crore as compared to Rs 637 crore clocked in FY23, which is an increase of 30% year-on-year, thus putting the company on an ascending graph right from its incorporation stage.
PC: The Economic Times
Interestingly, even in the Pandemic in FY21, it managed to maintain double digits growth and from those times the revenue generated is almost four times more making it Rs 248 crore in FY21 to Rs 827 crore in FY24.
Maybe the most impressive thing about the financial performance of the Urban Company was the massive reduction in its losses. It reduced losses by 70 percent to Rs 93 crore in FY24 from Rs 312 crore in FY23, aided by a mix of better capital efficiency, improved margins, and a reduction in fixed costs. It should, however, be noted that these figures are unaudited and may change at the actual balance sheet presented a few months down the line.
Urban Company has also shared some encouraging numbers for Q1 FY25. The company clocked Rs 281 crore in revenues during the quarter under review, a growth of 37.3 percent over Q1 FY24. Its operating EBITDA stood at Rs 7 crore for the same period.
Its earnings for service partners were shared by the company itself. On average, service partners who delivered over 30 services in a month earned ₹33,469; the top 20% of service partners earned an average of ₹42,792. Women service partners on the platform earned 23 percent more per hour than men in H2 CY23. Urban Company charged an average commission of around 25 per cent from its service partners.
It also closed a $63 million secondary sale where some of its backers, founders, and staff diluted their holdings. According to some sources, the buyback concluded with a valuation range of $2.2 to $2.5 billion.
The impressive display of Urban Company’s financial performance has been a truly unmistakable demonstration of its inherent resilience and ability to scale amidst challenging times. It has given an increasingly better bottom line on account of enhanced capital efficiency and lowered fixed costs, notching major revenue growth while the company at the same time noted a reduction in losses.
With continued business growth, it remains a key marketplace for home services, offering meaningful value to customers and good earnings opportunities to service partners.
