Urban Company Forms JV To Fuel Saudi’s Home Service Business

SUMMARY

The Joint Venture is aimed at upgrading the domestic service landscape in Saudi Arabia, as per Urban Company’s statement

Riyadh-based SMASCO is a technology marketplace for home services that claims to provide around 765 professional services in more than 55 cities and provinces

Urban Company in the first quarter of the current fiscal year clocked a revenue of INR 281 Cr

Hyperlocal services startup Urban Company has entered into a joint venture (JV) with SMASCO (Saudi Manpower Solutions Company) to roll out a new home services platform in Saudi Arabia.

The JV, Waed Khadmat Al-Munzal for Marketing Co., is aimed at augmenting the domestic service landscape in the Kingdom of Saudi Arabia, Urban Company said in a statement.

Abdullah Rakan Altimyat, CEO of SMASCO said, “By combining Urban Company’s technological expertise with our manpower resources, we are set to create a platform to meet the growing demand for quality, accessible home solutions.”

Abhiraj Singh Bhal, cofounder and CEO of Urban Company, said, “We look forward to the synergy between SMASCO’s manpower and market knowledge combined with our technological infrastructure and consumer first approach for the home services industry.”

Riyadh-based SMASCO is a technology marketplace for home services. It claims to provide around 765 professional services in more than 55 cities and provinces.

Earlier this month, it was reported that Prosus is looking to inject $30 Mn (around INR 252 Cr) into the Urban Company in a secondary deal, giving a partial exit to Bessemer Venture Partners.

In July, Urban Company raised INR 400 Cr ($50 Mn) from Bengaluru-based VC firm Dharana Capital through a secondary share sale. The fund raise coincided with Snapdeal cofounders Rohit Bansal and Kunal Bahl’s venture capital (VC) firm Titan Capital’s complete exit from the startup.

On the financial front, the company trimmed its losses by 70% in the financial year 2023-24 (FY24).

Urban Company posted a loss before tax of INR 93 Cr in the financial year 2023-24 (FY24), down 70% year-on-year from INR 312 Cr a year ago. The company saw its operating EBITDA decline to INR 116 Cr in FY24 as against INR 297 Cr a year ago.

In the first quarter (Q1) of the ongoing fiscal year (FY25), Urban Company clocked a revenue of INR 281 Cr.

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