In this modern era, everyone is busy. This makes life so hectic no time for household chores. Most people find it difficult to clean their homes once a week. Unless UrbanClap came to existence.
To find the people for household chores and other services like carpenters, plumbers are as difficult to find water in the Thar desert.
Where problems exist there will be entrepreneurs to tackle them. So the company called UrbanClap identified the problem and provide seamless services to customers.
UrbanClap is a home service provider and is a hyperlocal real-time matching platform. In this platform, users can easily find services professionals and get their services to their doorsteps.
UrbanClap nearly has 35000 service providers like beauticians, carpenters, plumbers, electronics services, and many more. This platform provided millions of jobs to under-grade professionals.
The company has expanded to 3 different countries like Australia, UAE, and Singapore. The company aims to create 1 million services professional by 2030.
UrbanClap valuation raised to $ 2billion.Recently company raised $190 million from the investors led by Napsters.In 2019 UrbanClap generated 116 crores of revenue.
This company provides almost 6 lakhs of services to users in a month.
UrbanClap founders are Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chandra. The company was founded in October 2014.
Urban Company success story is a truly inspiring one. The founders left their high-paying jobs to start their entrepreneurial journey. Urban company success story
How Urban Company started: Urban company Success Story
UrbanClap founder Abhiraj Singh Bhal and Varun Khaitan are two main motives to start the company.
Abhiraj was very desperate to start a company since from college days. Abhiraj and Varun were college friends. They two always discussed the plans and ideas to get started.
But never put it into action. Subsequently, Varun went to New York to build his profession. Abhiraj due to lack of support he moved to Singapore for the job.
Meanwhile, Abhiraj and Varun notice that a lot of young entrepreneurs are starting their ventures. This made their desire to start up a company more intense.
Finally, both Abhiraj and Varun quit their job and came to India. They decided to build something new. Abhiraj’s family was too shocked about his decisions. His family didn’t support him initially.
On contrary, the Varun family was happy with the decision. Because he belongs to the maarvadi family and his family insisted earlier to start his own business.
On the other end, there was an internet boom going on and a lot of eCommerce companies. Due to a lot of competition, they dropped the idea.
Abhiraj and Varun entrepreneurial journey : Urban Company success story
Both Abhiraj and Varun started their first company named Cinema Box. This company provides newly released movies to the buses.
To benefit the passengers while traveling long distances.
Abhiraj and Varun run the business for 6 to 8 months. There was no significant revenue generated. So they decided to close the company.
They too were decided to be in the startup field for the next 5 years and try out new things.
Meanwhile, Abhiraj got married. During the time of the marriage, Abhiraj found it very difficult to find carpenters and plumbers. This made him think and tackle the existing problem.
Abhiraj discussed with Varun to start a home service company. Then they decided to start but they wanted on tech guy for the support.
Previously their business shut down due to some technical and financial issues. They came to the importance of technology.
Raghav Chandra started his own company held an auto booking application. Abhiraj and Varun were in touch with Raghav from a common friend.
Raghav Chandra too shuts down his company because of the failure of the idea. As soon as Abhiraj and Varun aware of the news then they approached him. And finally explained their startup idea.
In October 2014 three failures started their company called UrbanClap. During the initial days, it was very difficult for them to find services professionals.
Raghav Chandra was busy developing technology-related work. Abhiraj and Varun desperately looking to get services professionals to their platforms.
Eventually, the company started to grow and its services were in demand. Users now easily book any services and get it done at their doorsteps.
In this wat, Urban Company success story will set a great example for Indian entrepreneurs. . It’s an inspiring startup story.
UrbanCompany fundings and acquisitions
UrbanClap gets fundings at its initial stages because of its uniqueness and demand. The company’s major investors are SAIF Partner, Accel, Bessemer, and Tiger Global Management.
UrbanClap’s fortune raised to a higher level after the investment of Ratan Tata. Then a lot of investors like Kunal Bahl, Rohit Bansal, and Kalyan Krishnamurthy invested in the company.
Urban Company 2021 : Urban company success story
This company gives services to homes such as repair appliances, hair cuts, massages, and many more. In 2021 Urban company earns operating revenue of 247.7 crores.
Presently, the Urban company has its presence in Singapore, Saudi Arabia, India, Australia, and Netherland. In total, Urban Company got 290 crores of revenue in 2021.
But losses jump year-on-year, as Urban company losses grew up to 61% in 2021. In 2021, the Urban company incurred a loss of 249 crores.
During the time covid pandemic, many startups were suffering from losses. Especially, Hotels and tourism industry were had an adverse effect.
Even home service provider, Urban Company had to face losses. Because many people were reluctant to take services from outsiders. So, to attract customers Urban company gave a lot of discounts. In 2021, the company gave discounts worth 27.7 crores.
Recent fundings of Urban Company were
- Porus – 463 crores
- DF International Management – 275 crores
- Wellington -248 crores
From this investment, UrbanClap becomes a unicorn in 2021 and valued at $ 2 billion.
In recent times UrbanClap acquired Glamazon. It was an Australian company that served people by appointment of salon and beauty parlors.
Then it acquired the company GoodServices a chat application.
It acquired HandyHome in 2016.HandyHome is a booking platform for home appliances.
Urban Company Rebranded
UrbanClap was the domain bought just for INR 130 by Abhiraj and Varun. Previously Abhiraj wanted to name the company pro waala. Abhiraj was ready to purchase the domain for INR 150,000. But after the suggestion, Varun accepted the name.
There was an issue with the name during expansion to other countries. In Australia, the word clap has an awkward meaning. Australian hesitated to work.
So the UrbanClap rebranded to Urban Company in 2020. This was the reason behind the change of the UrbanClap name.
Urban Company Business model
It generates its profit from its commission basis model. UrbanClap connects services providers and customers.
It acts as a supporting bridge for both end-users. For every service, it provides the company charges a commission from the services professionals up to 20%.
The company not only just connects professionals to customers instead it trains the service providers. Urbanclap had opened its training centers and provides immense and advanced technology-based services.
Another source of income is through advertisement. It won’t show ads from the third party instead it give priority to service providers. Service providers pay fees to get the top spot on the website after the search.
In this way, Urban Company serves its customers and made a huge impact on service professionals’ lives. Urban Company success story became successful mainly because of the efforts of their founders.
From Urban Company lot of under grade jobs such as plumbing, painting, carpentry, Ac repair have got a reputation and now earning nearly 50,000 to 60,000.
Urban Company Latest news 2022
The urban company provides essentially connects the service provider to the consumers. More precisely Urban company has its beautician,carpenters, plumber, and other blue-collar workers. They get trained and finally provide services to the consumers. Finally, the amount will be shared with the company and to the worker.
Even Ratan Tata has also invested in the company. But now the situation is not good for the Urban company. In early 2022, a lot of workers protested against high commission rates. Even a lot of employees are not paid regularly.
So these all circumstances landed the company in a red ocean. On another side, Urban company revenue in 2022 was 437 crores. There was a tremendous increase in revenue by over 76%. But the looses is close to 1000. crores.
Previously, Urban company 2021 revenue was 247 crores. Then the expenses were around 539 crores.
Urbany company startup is providing home essential services. Now there’s a tough time for the company to control its expenses. To scale the business wisely. Now in 2022, the Urban Company valuation is $2 billion.
From recent funding round, it raised $255 million.