Prosus-backed Urban Company, which provides homes services, said Wednesday it turned operationally profitable in the quarter ended June 30, 2024.
Urban Company reported Rs 7 crore in operating EBITDA in the first quarter of financial year 2024-25 and profit before tax of Rs 12 crore, according to the business summary shared by the company.
The pre-tax profit is 4.3% of the company’s net sales of Rs 281 crore for the quarter.
On an annual basis, this would translate to revenue of at least Rs 1,124 crore for the company, taking it well past Rs 1,000 crore. This would reflect a growth of about 36% for the company on a yearly basis. In comparison, Urban Company grew its sales by 30% to Rs 827 crore in FY24.
The company said it achieved growth on the back of investments in service quality, partner training, technology development and the launch of Native RO water purifier devices.
Urban Company, previously known as UrbanClap, was founded in 2014 by Abhiraj Bhal, Varun Khaitan, and Raghav Chandra. The Gurugram-based startup provides on-demand services including beauty, cleaning, repairs and other home services.
The startup last week closed a Rs 400 crore (around $50 million) secondary round that saw investment firm Dharana Capital bet on the company. It was last valued at $2.18 billion in 2021.
In FY24, the company narrowed its loss before tax to Rs 93 crore from a loss of Rs 312 crore in FY23.
The company has presence beyond the domestic market, in countries such as Singapore, and United Arab Emirates. The international presence is relatively new, and India is its primary market, accounting for about 90% of its revenue last year.
However, the overseas markets, where the startup is in expansion mode, are the primary contributor to losses. While its overall losses were about 11% of its overall net sales, its India losses were about 3% of its net sales in India.
The company has diversified its revenue streams beyond home services. Last year, it forayed into the consumer product category launching its own smart RO water purifier and wall panelling. At the end of first quarter, this had an annual revenue rate of Rs 96 crore for the company.
“We continue to invest in improving consumer experience, building new categories and driving efficiencies across our India and international businesses,” the company said.
