India’s largest home services aggregator Urban Company’s Revenues Jump 103% YoY in FY20

Urban Company (formerly UrbanClap), India’s largest home services aggregator, reported a surge of 103% in its unaudited operating revenues in FY20 over FY19. Urban Company’s revenues are largely earned from commission fee on every transaction facilitated by its online platform. 

By the new IND-AS accounting method, Urban Company saw a 103% increase in its operating revenues from INR 106 Cr. in FY19 to INR 216 Cr. in FY20 (Please note that these are unaudited figures. Further, in FY20, Urban Company moved from I-GAAP to IND-AS accounting method. As per I-GAAP accounting method, its operating revenues in FY19 were INR 116 Cr., which rose to INR 242 Cr. in FY20). The net booking value of all transactions through the Urban Company platform grew 138% from INR 385 Cr. in FY19 to INR 918 Cr. in FY20

The company highlighted that beauty and wellness vertical contributed to approximately 55% of its revenues in FY20. However, given the current lockdowns, its operations in this segment remain largely suspended, even as home repair and maintenance services have resumed. 

Abhiraj Singh Bhal, Co-Founder of Urban Company highlighted,“Urban Company grew very well in FY20. A big growth driver for us was our beauty business, which at present remains shut in most regions. 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. Over 70 lac people earn their livelihood through the beauty and wellness industry, many of whom are single bread-winners. 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.”

For the financial year FY21, Urban Company highlighted that protecting the health and safety of its customers and service partners was its number one priority. The company has implemented a  comprehensive set of eight safety protocols, including the usage of masks and gloves, mandatory use of the Aarogya Setu app, daily temperature checks, single use sachets and disposables, sanitization of all tools before the service delivery, no services in containment zones, health and safety training of its service partners and cashless transactions. 

Talking about the hygiene and safety protocols implemented by the company, Varun Khaitan, Co-Founder of Urban Company mentioned, “In these unprecedented times, we have to readjust ourselves to ‘living with COVID-19’, prioritizing hygiene & safety above all else. I am proud to say that the UC team has worked tirelessly in the last two months towards executing partner welfare programs and developing new SOPs for customer safety. While no process is foolproof, we will do everything we can to ensure that our services are hygienic and safe.”