UrbanClap hopes to turn profitable in the next two yrs

On demand mobile service marketplace UrbanClap today said it hopes to turn profitable over the next two years.

"We are not into discounting model but are yet to turn profitable. Expecting in the next two years we will turn profitable," UrbanClap co-founder Varun Khaitan said here today on the sidelines of launch of service in city.

Revenue has increased several times since early 2016 but the company has been unable to make profits as it is in investment mode, he said.

The total investment so far is about USD 10 million.

The startup begun its journey in 2014 has turned out to be the market leader in the seven cities it operates, Khaitan said.

UrbanClap already operates in Bengaluru, Mumbai, New Delhi, Chennai, Pune, Ahmedabad and Hyderabad.

Khaitan said UrbanClap will focus in Indian market at least for another year to increase its average daily service booking to 10,000-15000 from 5,000-6,000 daily now, before it expands in overseas markets of South East and Middle East.

"We are on an average transacting gross service value worth Rs 50 crore every month and offers in excess of 100 services," Khaitan said.

UrbanClap has raised USD 37 million from three rounds of funding. The largest one is of USD25 million in series B funding led by Bessemer Venture Partners.

Asked whether demonitisation has impacted positively on the company, Khaitan said usage of digital payment has increased five fold for standardised services though there was no major rise in volume.