India-focused investment firm Dharana Capital, which has domestic-backed companies such as NoBroker, Zomato, Zopper, Lentra and Itilite, has invested Rs 400 crore (around $50 million) in Urban Company via a secondary transaction.
Dharana Capital bought shares from Urban Company’s employees and other shareholders, the firm said in a press release.
Vamsi Duvvuri, founder and managing partner of Dharana Capital, will join Urban Company’s board as a non-executive director.
Gurugram-based home services unicorn Urban Company (formerly known as Urban Clap) is an online marketplace for home services. The company was founded in 2014 by Abhiraj Singh Bhal, Varun Khaitan and Raghav Chandra.
Urban Company operates in 62 cities across India, the UAE, Singapore, and Saudi Arabia. The company has a partner network of over 55,000 service professionals.
“Urban Company, with its full-stack approach and focus on partner enablement, has built a strong, capital-efficient and durable business in a challenging local services market,” said Duvvuri.
Urban Company reported a 45% jump in its consolidated operating revenue to Rs 636.6 crore in FY23, according to VCCEdge, the data intelligence platform of VCCircle. In FY22, the company grew its revenue by 76.7% to Rs 437.6 crore. Its net loss in FY23 stood at Rs 308.4 crore, down from Rs 514.7 crore in the previous year. It claimed to have achieved breakeven in the quarter ended June 2023.
The firm is backed by Ratan Tata, Tiger Global and Prosus. It had raised $188 million in a growth funding round led by Prosus Ventures and participated by Vy Capital, Steadview, Tiger Global, Wellington and DF International. It is also backed by Trifecta Capital, Accel, and Eight Road Ventures.