Urban Company funding
Urban Company has raised $190 million in funding from investors led by Prosus (formerly Naspers), regulatory filings sourced from Tofler reveal.
The transaction more than doubles the company’s valuation to $2 billion. In its previous funding round, led by Tiger Global in 2019, it was valued at $933 million. This makes Urban Company the latest Indian startup to join the unicorn club.
Other participants include Tiger, Steadview Capital, Vy Capital, and others. The company has to date raised $370 million of equity capital from investors across several rounds. Its other early investors include Bessemer India, Elevation Capital, and Accel India.
The filings showed that 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 also show Urban Company allotted 2,613 equity shares and 50,490 Series F preference shares at an issue price of Rs 265,553.1 apiece to raise about $190 million.
Following the transaction, the three founders Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chandra will each own 8.22% of the company. Elevation Capital will hold a 14.56% stake, while Accel India will have a 14.40% stake.
Established in 2014, the Gurugram-based company is a home services provider with operations across the country. It has also expanded its footprint into international markets such as Australia, Singapore, Dubai, and Abu Dhabi.
Post rebranding itself, the company has observed its business grow steadily. The company generated revenues of about Rs 216 crore in FY20, up from Rs 106 crore in FY19. It made a loss of Rs 137.8 crore for FY20, filings show.
On April 6, the company announced that it would cover Covid-19 vaccination costs for its 30,000+ service partners. It also said it would partner with local government authorities and healthcare providers to ensure its service partners are fully vaccinated over the next few months.
Urban Company has an amazing growth trajectory and with the latest funds is looking at huge growth opportunities.Shishir Gupta, Founder and CEO, StartupLanes
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