Urban Company
- Jinal Sanghavi
- Aug 2
- 8 min read
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Urban Company is a home services provider with plans to become a publicly traded unicorn soon. Its story begins with a fundamental frustration experienced by millions of urban Indians - finding reliable, professional home service providers. Hiring a plumber, electrician, or beautician meant navigating an unorganized sector plagued by unprofessionalism, price opacity, and trust issues. Service providers often arrived late, charged arbitrary rates, and delivered inconsistent quality, while customers had no recourse for poor service.
Since its inception in 2014, Urban Company has emerged as an undisputed leader in the organized home services sector in India, perfecting a challenging service marketplace business. In this episode, we cover the journey from being UrbanClap, started as a Uber for X marketplace model to Urban Company, a full stack service provider. The co-founders, Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chandra, each bring a unique skill set to the company, set a high standard of customer focus and have succeeded in building a unique institution, through training and standardization efforts that have set industry standards.
Urban Company is inspiring - a near monopoly in Indian online home services, but not without its own challenges in growth potential. There’s currently <2% online penetration of home services, the target market of mid to high income urban households in India is limited to ~13% of total households and quality supply is a constraint.
In this episode, we break down Urban Company's past, present, and future. We’ve also attempted to take it up a notch this time. Let us know what you think!
Key topics discussed along with timestamps:
00:42: Urban Company: A Modern Necessity
02:13: The Founding and Evolution of Urban Company
03:34: Challenges and Strategic Shifts
07:58: Market Landscape and Opportunities
14:30: Founders' Vision and Customer Obsession
18:45: Business Model and Revenue Streams
26:46: Urban Company's Product Strategy
28:31: Challenges in Selling High-Ticket Items
30:27: Marketing and Customer Retention
34:20: Operational Excellence and Full-Stack Model
38:12: Company Culture and Values
40:43: Financials and IPO Insights
44:21: Future Plans and Market Expansion
48:55: Final Thoughts and Key Conclusions
 Industry Landscape / Competition / Services in India
Market Opportunity: The home services market in India is evolving, driven by increasing urbanization and busier lifestyles. It has a total addressable market (TAM) of ~$60 billion in 2024, projected to grow at a CAGR of 10-11% to reach ~$100 billion by 2029. However, only 2% of Indian households currently use online home services, compared to 21% in China and over 50% in the US, indicating enormous untapped potential.
The serviceable addressable market in India's top 200 cities alone is estimated at $22Bn, representing 1/3rd of the total addressable market
Key segments include:
Female Beauty: Largest segment at ~3 billion in 2024
Male Grooming: ~3 billion in 2024
Home Services: Including cleaning, pest control, appliances repairs, handyman, home painting, and home renovation and upgradation.
Appliances & Repair: Large market with a projected CAGR of 9-10% to reach ₹1,465-1,490 billion by 2029.
Pest Control: Valued at ₹54-56 billion in 2024, projected to reach ₹88-91 billion by 2029.
Painting & Home Decor: Serviceable addressable market in top 200 Indian cities valued at US$5.6 billion for 2024, projected to grow at 13% annually.
Company History
The company was initially incorporated as "UrbanClap Technologies India Private Limited" on December 22, 2014. The founders aimed to find large sectors in India that hadn't been disrupted by large companies. They realized that the home services market, though highly disorganized, held a significant opportunity between $100 Bn to $400 Bn. They sought to address the major lack of organization in the market and the pain points faced by average households when seeking service providers.
Technology-driven, full-stack online marketplace for quality-driven services and solutions across various home and beauty categories. It has revolutionized at-home services, simplifying processes and allowing users to receive services in the comfort of their homes. The company aims to offer users authentic and reasonably priced services and connects customers with top-rated experts. It operates in 59 cities across India, United Arab Emirates (UAE), Singapore, and Kingdom of Saudi Arabia (KSA), with 48 cities in India. They underwent a rebranding in 2020 aimed to give the company a "universal appeal" and was easier to recall across demographics and geographies, also potentially addressing negative associations with the word 'Clap' in the West.
UC began with a simple Facebook group where Abhiraj posted: "Reach out to us for any service you need". The very first customers included someone needing business cards printed overnight and another requiring a carpenter to fix a door. This grassroots approach validated their hypothesis about market demand before they invested in building technology.
Initially operating as a marketplace connecting customers with service providers, Urban Company faced a critical realization in 2015. Despite raising millions in funding, the founders recognized they weren't creating enough value. Customers still experienced the same fundamental problems: unprofessional service, lack of training, and price transparency issues.
The company made a bold decision to pivot from a simple listing platform to a "full-stack" model. They chose one category - women's beauty services - and went deep, building their own supply chain, providing financing to professionals, establishing training centers, and standardizing pricing. This approach proved transformational, with customer satisfaction scores soaring and service professionals joining in droves. Urban Company's mission has evolved from simply connecting service providers to customers to something more ambitious: "To empower millions of professionals worldwide to deliver services at home like never experienced before". This mission reflects their commitment to both customer delight and professional empowerment, positioning them as a force for socio-economic mobility in India's informal service sector
Founders
Abhiraj Singh Bhal - CEO with bachelor's degree from IIT Kanpur and a postgraduate diploma from IIM Ahmedabad. Previously a consultant at Boston Consulting Group.
Raghav Chandra: CTO / CPO. Holds a bachelor's degree in computer science from UC Berkeley. Previously worked at Twitter, Inc. and founded Buggi.com, an auto-rickshaw aggregator.
Varun Khaitan: COO. Holds a bachelor's degree in electrical engineering from IIT Kanpur.
Previously associated with Qualcomm Incorporated and Boston Consulting Group.
Business Model
Urban Company operates a two-sided marketplace connecting consumers with service professionals. It employs a full-stack approach, controlling everything from onboarding and training professionals to ensuring service quality and offering micro-financing. This differs from simpler lead-generation models previously common.
Revenue Model: Urban Company uses a mixed monetization model, primarily deriving revenue from:
Commissions: Charging service providers a percentage of the total service price. 20-30% commission on each service transaction, varying by category and city
Customer Memberships (~10% of revenue): Premium subscription plans offering discounted rates and priority booking
Product Sales to Professionals (~15% of revenue): Tools, consumables, and equipment sold to service partners
Advertisements: Running ads for businesses and manufacturers on its platform.
Native Product Sales (~10 of revenue): Consumer electronics like water purifiers and smart locks
Products & Services: Urban Company operates across 17+ service categories
Core Services: Cleaning, pest control, electrician, plumbing, carpentry, appliance servicing and repair, painting, skincare, hair grooming, and massage therapy.
Beauty & Wellness ~55% of revenue - Salon services for women (facial, waxing, threading); Spa services (massage, stress relief);Â Men's grooming (haircut, beard styling)
Home Services: - Appliance repair (AC, washing machine, water purifier); Home repairs (electrical, plumbing, carpentry); Cleaning services (deep cleaning, pest control);Â
Service Standardization: Focuses on standardizing the end-user experience, pricing, and service delivery under the Urban Company brand. This includes standardized tools, uniforms (like t-shirts), SOPs, and even supplying products used during service delivery.
New Offerings: Expanded to small home painting projects, wall panel services for home decor, and cleaning subscription services. They also launched "InstaHelp" in Mumbai, currently in pilot phase.
"Native" Brand: Launched water purifiers and electronic door locks under the 'Native' brand in 2023. This brand is performing well, with Native water purifiers having the lowest total cost of ownership in 2024. This expansion into products aims to solve real consumer pain points, especially in categories where they have extensive service experience. Smart Door Locks are integrated with Urban Company app for enhanced security and are part of broader IoT ecosystem strategy. This product strategy serves multiple purposes: higher margins, increased customer engagement, and reduced dependency on pure service transactions
Technology Innovations: Developed proprietary tools like 'Co-Pilot' for appliance diagnosis and an integrated wireless communication system for electronic door locks, for which they have applied for patents. They use AI and ML algorithms for automated matchmaking and to understand customer needs better.
Valuation
Urban Company was valued at $2.1 billion after raising a $188-million Series F round in 2021.Â
Funding Raised: Total funding of $508.9 million over 13 rounds. Has raised $376 million across several funding rounds, including Seed ($1.6M, 2015), Series A ($10M, 2015), Series B ($25M, 2015), Series C ($21M, 2017), Series D ($50M, 2018), Series E ($75M, 2019), and Series F ($255M, 2021).
IPO: Filed for a ₹1,900 crore (approximately $225 million) IPO, with the Draft Red Herring Prospectus (DRHP) dated April 28, 2025. The offer includes a Fresh Issue of up to ₹4,290 million and an Offer for Sale of up to ₹14,710 million. The fresh issue proceeds will fund technology development, cloud infrastructure, office lease payments, marketing, and general corporate purposes.
Future Plans of the Company
Geographical Expansion: Intends to further expand its presence in India beyond the current 48 cities, focusing on the top 200 cities. Also views KSA as a key market for future growth.
Target 500,000 service partners including 200,000 women partners
Focus on tier-2 cities showing "a lot of promise"
International Market
Established presence in UAE, Singapore, Saudi Arabia
Partnership-based approach after exiting Australia and US
Joint venture model in Saudi Arabia
Service Category Expansion: Plans to deepen penetration in existing markets by improving consumer experience and launching more offerings. Aims to add more Service Specific Units (SSUs) to enable consumers to upgrade home spaces.
Home renovation and interior design
Elderly care services
Pet care services
Automotive services (car washing)
Possible robotic services integration
Insta Help Initiative
15-minute service delivery in select Mumbai areas
Expansion to Bangalore, Delhi, Hyderabad
Quick commerce model for basic home help
Product Diversification: Continuing to develop the "Native" brand for products that solve real consumer pain points, potentially extending to other home appliances.
Entry into home appliances spare parts market
Technology & Innovation: Continued investment in new technology development and cloud infrastructure. Plans to simplify and codify the business playbook into tech, using advanced tools for diagnostics.
Multi-category checkout system
Enhanced recommendation engines
IoT capabilities for Native products
Training-as-a-Service: Foresees itself as a significant training player in the next 4-5 years, aiming to create job opportunities through skilling and becoming a "Linkedin for blue collar jobs".
Concluding Thoughts
Urban Company has done the hard part — building trust, standardizing an unorganized sector, and mastering execution. Their moat lies in quality control, operational depth, and partner engagement — not just tech.
But the next 5 years will be about balancing growth with profitability. Expect them to go deeper in services that offer high repeat, strong margins, and predictable delivery.
So while categories like beauty, cleaning, appliance servicing, and international expansion look promising, expect a pruning of one-time, low-repeat services over time.
Urban Company is not just building a services platform - they’re shaping how urban India consumes trust-based, skilled labor. And that’s a very big, very defensible space to be in.
Do check out the following videos
1/ Choti Soch Ad Campaign
2/ Taking us through UC's Value
Reference links to know more: