Home services startup Urban Company‘s operating revenue more than doubled in financial year 2019-20 on the back of its beauty and wellness segment.
Urban Company, which rebranded itself from UrbanClap earlier this year, clocked a 103% year-on-year growth in operating revenue to Rs 216 crore in FY20, compared with Rs 106 crore in the previous fiscal, according to a press statement. The beauty and wellness vertical contributed around 55% to its FY20 revenue.
The home services aggregator had changed its accounting method from I-GAAP to IND-AS standard in FY20. The net booking value of all transactions on its platform jumped 138% to Rs 918 crore in FY20, from Rs 385 crore in FY19, it said, adding that the numbers are unaudited.
The Gurgaon-based startup, founded by Abhiraj Singh Bhal, Varun Khaitan and Raghav Chandra, runs a full-stack services marketplace including spa, beauty, grooming, repairs, cleaning among others. It earns revenues through a commission fee model based on transactions made on its online platform.
But owing to the Covid-19 pandemic, the company had to halt business activity during the first two phases of the nationwide lockdown. In the third phase, however, home repair and maintenance services have resumed in some cities.
“As the government considers a graded opening of the economy, we request them to allow beauticians and barbers to deliver homes services across zones, much like they have allowed other self-employed service persons, be it plumbers, electricians or appliance technicians to start working,” Abhiraj Bhal, CEO of Urban Company, said in a statement.
Over 70 lakh people earn their livelihood through the beauty and wellness industry, he said. “Services at home are delivered in a 1-to-1 format and minimize congregation. This would be similar to the restaurant industry which has been allowed to deliver food at home while dine-in operations remain suspended.”
In August last year, the company had raised $75 million in a Series E round led by US-based investment fund Tiger Global Management, valuing it at close to $1 billion. The firm has till date cumulatively raised about $200 million from investors including SAIF Partners, Accel, Steadview Capital, and VY Capital.