Urban Company Records 38.2% Revenue Growth in FY25
Urban Company, a prominent home services marketplace, achieved an impressive 38.2% increase in revenue, reaching Rs 1,144 crore for the fiscal year ending March 2025 (FY25), as highlighted in its annual report. The company successfully transitioned into profitability in FY25 after experiencing significant losses in FY24.
Transaction Volume and Service Range
During FY25, Urban Company facilitated a total of 6.8 million customer transactions across 17 super categories in 51 cities, amounting to a net transaction value of Rs 3,115 crore, inclusive of India and international operations.
Diverse Range of Home Services
The company’s offerings encompass a broad spectrum of home services, such as spa and salon treatments, air conditioning repairs, electrical services, painting, wall panel installations, pest control, and more. Additionally, Urban Company generates revenue from selling its native water purifier and products aimed at service professionals.
Revenue Breakdown
In terms of revenue distribution, platform services stood out as the primary revenue source for Urban Company, contributing 64.8% of its total operating income. This segment saw a 32.5% increase, amounting to Rs 742 crore in FY25. Revenue from customer memberships experienced a modest growth of 7.7% to reach Rs 98 crore during the same period.
Product Sales Growth
On the product sales front, Urban Company reported an extraordinary 300% rise in revenue from its native water purifier, escalating to Rs 116 crore in FY25 from Rs 29 crore in FY24. The remaining Rs 188 crore was generated from product sales to service professionals.
International Operations and Total Revenue
Urban Company also operates in international markets such as the UAE, Singapore, and the Kingdom of Saudi Arabia (KSA). Out of its total operating revenue, Rs 997 crore was sourced from India, including water purifier sales, while the remaining Rs 147 crore was derived from international business activities.
The company additionally garnered Rs 117 crore from interest and profits from mutual fund investments, bringing the total income for FY25 to Rs 1,261 crore, up from Rs 928 crore in FY24.
Cost Structure Analysis
Employee benefits emerged as the most significant expenditure for Urban Company in FY25, accounting for 28.6% of total costs. This expense remained stable at Rs 350 crore, which includes a non-cash ESOP expense of Rs 72.5 crore. Notably, advertising and business promotion costs also held steady at Rs 207 crore throughout the year.
Other cost categories, such as materials, professional incentives, freight, payment gateway fees, outsourced support, and overhead costs, contributed to an overall expenditure of Rs 1,223 crore in FY25, an increase from Rs 1,021 crore in FY24.
Profitability Insights
According to the annual report, Urban Company’s India consumer services segment generated a profit of Rs 113 crore in FY25. However, the native water purifier division and international operations faced losses of Rs 38.7 crore and Rs 33.7 crore, respectively.
The year-on-year growth, paired with controlled spending, especially in employee benefits and advertising, allowed Urban Company to achieve a profit before tax (PBT) of Rs 28.5 crore in FY25, recovering from a loss of Rs 92.7 crore in FY24. Its return on capital employed (ROCE) and EBITDA margin improved to 2.46% and 6.68%, respectively, in FY25.
Current Assets and IPO Plans
On a unit level, Urban Company invested Rs 1.07 to generate a rupee of operating revenue. At the end of FY24, the company recorded total current assets of Rs 1,671 crore, with cash and bank balances amounting to Rs 590 crore.
Urban Company is preparing for its initial public offering (IPO). In April, the company, led by Abhiraj Singh Bhal, submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) seeking to raise Rs 429 crore (approximately $50 million) through a fresh issue while offering shares worth Rs 1,471 crore for sale.
Competitive Landscape
Having once been a relatively uncontested leader, Urban Company now contends with increasing competition from emerging startups like Snabbit and Pronto. Furthermore, Swiggy has also ventured into the on-demand professional services market with its offering, Pyng.