Urban company, which is a well known name in the service marketplace has reported a rise in its year-on-year business. This article will uncover the answer to the question – How is Urban company profitable?
Urban company which was formerly known as Urban Clap, since its establishment in the market has been the talk of the town. As it offers the ease and convenience to the people to access all types of services, be it cleaning, salon, home painting, repair, installation services, etc. within just a few clicks at their doorstep.
By making all types of services available at one platform, Urban Company has successfully registered an upscale in their business, and not only that, they have reported a decline in its losses too!
1.Uncovering Its YOY Financials
Here are some factors that describe the YOY financials of the Urban Company like its financial overview, revenue breakdown, expenses, losses, and some other factors too.
(1.1) Key Metrics of Urban Company
The financial key metrics of the Urban company show how they are performing on a financial scale. The data and the numbers are as per the annual report published by the company on their website.
| Factors | Numbers |
| Net transaction value | Rs.2,825 crores |
| Net revenue | Rs.817 crores |
| Business from repeated users | 77% business come from repeated users |
| Operating in cities | Operates in 60+ cities |
| Average rating (FY23) | 4.82 |
(1.2) Revenue Analysis
The company registered a 45% increase in its revenue in FY23 as compared to its previous year revenue, as per the financial report published on the website of the company.
| Factors | FY23 | FY22 |
| Operating revenue | 637 crores | 438 crores |
| Revenue from sale of services | 496 crores | 347 crores |
| Revenue from sale of products | 141 crores | 91 crores |
| Total expenses | 945 crores | 952 crores |
Urban Company has witnessed a rise in its operating revenue, revenue from sales of services as well as products. Also has reduced their yearly expenses.
(1.3) Loss Analysis
- The company’s losses were reduced and controlled to Rs.308 crores in FY23, as compared to their losses in FY22 which were Rs.514 crores (2x reduction).
- While in FY21, the company reported their losses to be around Rs.247 crores. The losses in FY22, were more as seen in other year’s loss numbers.
(1.4) Expense Analysis
| Factors | FY23 | FY22 |
| Other expenses | Rs.436 crores | Rs.498 crores |
| Direct expenses | Rs.257 crores | Rs.237 crores |
| Employee benefits expenses | Rs.252 crores | Rs.217 crores |
Expenses of Urban Company in FY23 report, were less overall as seen the company’s expenses in FY22.
- Apart from that, the top 20% of partners of Urban Company earned an average of Rs. 40,000 per month, which is a net of all commissions and other related costs that constitutes the travel, product expenses, and more like that, in the first half of the calendar year 2023.
(1.5) User Analysis
| Year | Repeated users | New users |
| FY23 | 77% | 23% |
| FY22 | 72% | 28% |
| FY21 | 64% | 46% |
| FY20 | 48% | 52% |
Urban company has successfully registered its existing users and most of the business comes from its repeated users, with that it has attracted a good amount of new user base too.
2. IPO Plans of Urban Company
After entering into the list of unicorns in 2021 by raising $255 million in series F of funding round, the company planned to go for an IPO in the next 18-20 months. For that the company is already working towards it, according to the co-founder of Urban Company, Abhiraj Singh Bahl.
3. Is Urban Company Profitable?
Urban Company is reported to be profitable. According to the stats and data for the FY23 published by the company on their official website, the company has grown 45% on an year-on-year basis. With this they registered a revenue from operations of Rs.INR 637 Cr. in FY23, a higher number as compared to FY22 revenue.
Also, the expenses and the losses have also been reduced in the FY23. All of which constitutes the profitability of the company.
4. Summing Up
According to the above stats and data, Urban Company for FY23 turned out to be profitable, by experiencing a 45% year-on-year (YOY )rise in its revenue, and also has reduced their losses and expenses. The above numbers have been presented by the company itself on their official handle. These YOY results provide us the opportunity and the route to analyze the company’s financials till date, that caters both its ups and downs.
