On-demand home service provider Urban Company has landed a USD 190 million check in the funding round led by Prosus Ventures, a deal that has more than doubled its valuation to USD 2 billion.
The six-year-old company was last valued at USD 933 million in 2019 when it raised USD 75 million financing round led by Tiger Global. With the latest transaction, Urban Company has become the latest Indian startup to enter the elite unicorn club.
According to the regulatory filing, cited by local media Entrackr, Prosus, a backer of high profile startups like food delivery major Swiggy and social commerce startup Meesho, has led the round by putting in USD 61.93 million. Meanwhile, DF International and Wellington Management have joined the company’s cap table by pouring in USD 37 million and USD 33.2 million, respectively. Existing backers, Vy Capital, Tiger Global, and Steadview Capital also participated in the latest round.
Post the deal, Prosus, DF International, and Wellington Management will own 3.18%, 1.90%, and 1.7% stake in the company, respectively, the Entrackr report said. Urban Company’s three co-founders, Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chandra, now own an 8.22% stake each and collectively hold 24.66% of the company. Elevation Capital (formerly known as SAIF Partners) is now the largest stakeholder in the company with a 14.56% stake.
The company has raised USD 370 million in venture capital to date. Its other backers include Bessemer India, Elevation Capital, Accel India, and veteran entrepreneur Ratan Tata.
Urban Company is the eighth startup to achieve unicorn status this month after Chargebee, Gupshup, ShareChat, Groww, PharmEasy, Cred, and Meesho. In total, India has spewed 13 one-billion-dollar companies this year including Urban Company.
Founded in November 2014, Urban Company (formerly UrbanClap) offers services such as beauty and spa at home, house cleaning, plumbing, carpentry, appliance repair, painting, among others. Users can book these services through its mobile app and website in over 30 cities in India. It is one of the very few startups to be able to expand operations to international markets and has a presence in Australia, Singapore, UAE, and Saudi Arabia.
Last year, as millions of people in the world’s second-most populous country remained in their houses due to the lockdown, the startup saw a spike in demand for home services after the lockdown was lifted. Its growth trajectory is likely to continue this year as India is now reeling under the second wave of coronavirus and people are wary of stepping out at the moment.
In March, the company said it plans to onboard over 20,000 professionals on its platform this year “to meet the strong growth in demand for various services” post the lockdown, according to a report by wire service PTI. At present, the company reportedly employs 40,000 gig workers, of which over 35,000 are in India.
Earlier this month, Urban Company said it would cover COVID-19 vaccination costs for its over 30,000 service partners and that it would collaborate with local government authorities and healthcare providers to make sure its fleet of service partners are fully vaccinated over the next few months.