SUMMARY
The Move Marks UrbanClap's International Debut
On-demand hyperlocal home services marketplace UrbanClap has made its international debut. The web and app-based platform has been formally launched in Dubai, the startup’s co-founder Abhiraj Bhal announced on social media on Wednesday.
“UrbanClap is formally launched in Dubai today. If you are in Dubai, do check out our services,” Bhal posted on Facebook.
Later, Business Line reported that the startup plans to begin its Dubai operations with about 100 service people by offering five services: laundry, home cleaning, handymen, packers and movers, and home painting.
An email query by Inc42 did not elicit any response to confirm the development till the time of publication.
However, UrbanClap doesn’t consider their latest move as an ‘international expansion’, Bhal reportedly told the media. “We don’t see it as an international expansion but as a strategic entry into a global city that is close to India,” Bhal said.
UrbanClap is a hyperlocal service marketplace that helps users find local, at-home services related to health and wellness, weddings, events, home and design, repair and maintenance, etc. In India, UrbanClap services are available in eight cities: Ahmedabad, Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, Mumbai and Pune.
The Delhi-headquartered company was founded in October 2014 by Abhiraj Bhal, an IIM-Ahmedabad alumnus, Raghav Chandra, a computer science and engineering graduate from the University of California, Berkeley, and Varun Khaitan, an IIT-Kanpur alumnus.
Its operation revenues grew four times to $6.6 Mn (INR 45 Cr) in FY 2017-18 from $1.6 Mn (INR 11 Cr) in 2016-17. In April 2018 alone, UrbanClap clocked 450,000 service requests, with an average transaction value of $17.79 to $22.23 (INR 1,200 to INR 1,500) per request. The gross transaction value of services delivered via the platform stood at well over $7.4 Mn (INR 50 Cr) in the same month.
The on-demand startup is said to have served over 3 Mn customers with its 100,000 verified experts. Till date, it has raised total funding of $60.7 Mn in six rounds led by major venture capital firms — SAIF Partners, Accel Partners, and Bessemer Venture Partners. Investors such as Snapdeal cofounders Kunal Bahl and Rohit Bansal have also joined hands with UrbanClap.
According to Technavio market research analysis, the global online on-demand home services market is expected to grow at a CAGR of close to 49% during the forecast period 2017-2021. The report has also highlighted that the homecare and design segment accounted for close to 60% of the market share in 2016.
Dubai, on the other hand, has its own homegrown startups specialising in home services marketplaces like ServiceMarket (formerly, MoveSouq), mrUsta, and Helpbit among others, which help users connect customers with professional and licensed home services companies. With top competitors entering the fray, how UrbanClap manoeuvres its growth in Dubai’s home service marketplace will be an interesting watch.
