urban company funding: Urban Company raises $190 million, joins unicorn club as valuation jumps to $2 billion

On-demand home service provider Urban Company has raised $190 million from investors led by Prosus (formerly Naspers), regulatory filings sourced from Tofler show.

The deal more than doubles the company’s valuation to $2 billion. In its last funding round, led by Tiger Global in 2019, it was valued at $933 million. Urban Company is thus the latest Indian startup to enter the coveted unicorn club.

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Tiger, Steadview Capital, Vy Capital and others also participated in the round. The company has so far raised $370 million of equity capital from investors across various rounds. Its other early investors include Bessemer India, Elevation Capital, and Accel India.

According to the filings, Prosus has invested $61.93 million, DF International $37 million, and Wellington Management $33.2 million, giving them a 3.18%, 1.90% and 1.7% stake, respectively.

The documents show Urban Company allotted 2,613 equity shares and 50,490 Series F preference shares at an issue price of Rs 265,553.1 a piece to raise around $190 million (Rs 1,410.2 crore). News website Entrackr was the
first to report the story.

After the deal, the three founders — Abhiraj Singh Bhal, Varun Khaitan and Raghav Chandra — will each own 8.22% of the company. Elevation Capital (formerly Saif Partners) will hold a 14.56% stake, while Accel India will have a 14.40% stake.


A company spokesperson refused to comment on the fundraise.

Founded in 2014, the Gurugram-based company is a home services provider with a presence across India. It has also expanded into international markets such as Australia, Singapore, Dubai and Abu Dhabi.

After rebranding itself (it was formerly called UrbanClap), the company has seen its business grow steadily.

Urban Company posted revenue of around Rs 216 crore in fiscal 2020, up from Rs 106 crore in FY19. It reported a loss of Rs 137.8 crore for FY20, its filings show.

On April 6, the company had said that
it would cover Covid-19 vaccination costs for its more than 30,000 service partners. It also said it would collaborate with local government authorities and healthcare providers to ensure its service partners are fully vaccinated over the next few months.

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