Prosus-backed Urban Company achieves pre-tax profitability in June quarter

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Gurugram-based home services platform Urban Company clocked a net revenue of about Rs 280 crore during the April-June quarter, giving it an annualised revenue run rate of Rs 1,120 crore. This is a growth of about 70 percent when compared to the same period last year.

The growth in the company’s topline came even as it turned profitable on a pre-tax basis.

"Our India business has been profitable. UAE, which is the our second largest market, is almost at the cusp of profitability," said Co-founder and CEO Abhiraj Singh Bhal.

The company is yet to file its financial statement for the fiscal that ended March 2024.

Without divulging exact figures, the CEO said the firm has managed to bring down its losses significantly over the years.

Further, he said the company is on track for an initial public offering (IPO) in 2025, and will soon announce a new independent director on its board.

As per a previous report from Entrackr, Urban Company had posted a little over Rs 7 crore in profit before tax (PBT) in April 2024 on a consolidated basis.

In FY23, the Prosus-backed platform had reported growth with operating revenue reaching Rs 637 crore, a 45 percent year-on-year increase. During that period, losses before taxes decreased notably to Rs 308 crore, down from Rs 514 crore in FY22.

The home services and beauty salon marketplace has a presence across over 30 cities in India along with operations in foreign markets, including Singapore and Saudi Arabia.

The platform, which connects gig workers with home services, is clocking 2.2 million average monthly orders with an average order value of Rs 1,290.

In October, the company started selling water purifiers and smart locks under the brand name-Native. "Though it accounts for a small fraction of the revenue, it is among the fastest growing category. We are continuously expanding the distribution and the capacity. Pleasantly surprised by the traction of the product," the CEO said.

As of today, Urban Company claims to operate with 57,000 partners, who managed to deliver 23 million services on the platform in FY24.

Per the latest earnings index, a partner is able to clock an average monthly net earnings of Rs 33,469 (based on delivering less than 30 services a month) while the top 20 percent of partners manage to touch Rs 42,792.

The firm claims to have spent Rs 138 crore in training and upskilling over 35,000 partners in FY24 and disbursed Rs 6.29 crore as insurance claims among 1,800 partners.