Urban Company FY22 Loss Widens 2X To INR 514 Cr, Operating Revenue Surges 77%

Gurugram-based hyperlocal services platform Urban Company’s consolidated net loss more than doubled to INR 514 Cr in the financial year 2021-22 (FY22) from INR 249.2 Cr in FY21 on the back of a sharp rise in its expenses.

The startup’s total expenses almost doubled to INR 1,023.3 Cr during the year under review from INR 539 Cr in the previous financial year.

Meanwhile, the Tiger Global-backed startup, which entered the unicorn club last year, saw its total income grow 75.7% to INR 509 Cr in FY22 from INR 289.7 Cr in FY21. Revenue from operations surged 76.6% to INR 437.5 Cr from INR 247.6 Cr in FY21. 

While Urban Company generated revenue of INR 91.7 Cr through sale of products, it earned INR 345 Cr through sale of services, according to its regulatory filings. 

Urban Company offers multiple services ranging from plumbing, AC repairing, and home cleaning to personal care services, including salon and spa services. 

Earlier this year, Inc42 exclusively reported that the startup also forayed into skincare consultancy. It onboarded doctors, primarily dermatologists, to offer free medical counseling on skincare to its customers. 

Urban Company’s business received a boost amidst the Covid-19 pandemic as the lockdown and other related restrictions and the fear of contracting the coronavirus led to a surge in the demand for its services.

Employee Benefit Expenses Surge

Urban Company’s total expenses rose 89.8% year-on-year (YoY) in FY22, led by the increase in its employee benefit expenses. The startup’s employee benefit expenses jumped over 95% to INR 443.8 Cr during the year from INR 227 Cr. 

Employee benefit expenses usually comprise employees salaries, PF contribution, gratuity, and other employee welfare benefits. 

Marketing expenses were the other major contributor to total expenses as they jumped to INR 220 Cr in FY22 from INR 117 Cr in the previous year.

Besides, the startup spent INR 38 Cr and INR 12 Cr for legal professional charges and training recruitment, respectively, in FY22, while contractual employee expenses stood at INR 65.7 Cr as against INR 19 Cr in FY21. 

Urban Company was founded in 2014 by Abhiraj Bahl, Raghav Chandra, and Varun Khaitan. The startup has raised a total of $445 Mn across multiple rounds of funding. In July last year, the startup raised $225 Mn in its Series F round led by Prosus Ventures, Dragoneer, and Wellington Management at a valuation of $2.1 Bn. 

The startup is also backed by other marquee investors such as Tiger Global, Vy Capital, Steadview Capital, among others.