Rs 57 lakh turns Rs 111 crore: Snapdeal co-founders Kunal Bahl, Rohit Bansal exit Urban Company with 200x returns

Snapdeal co-founders Kunal Bahl and Rohit Bansal, who also runs investment firm Titan Capital, have exited the Gurugram-based services platform Urban Company with a massive 200 times return on their initial investment. 

They initially invested Rs 57 lakh in the at-home services platform in 2015. With their exit, the aggregate proceeds from this investment total Rs 111 crore, ET reported.

Who bought their stake?

The report said Bahl and Bansal's stake was bought by Vy Capital’s offshoot Dharana Capital. The transaction involved a $50 million secondary deal at Urban Company.

Additionally, some employees also sold their stock options as part of this secondary transaction.

Vamsi Duvvuri, founder and managing partner of Dharana Capital, will join the Urban Company board as a non-executive director.

“We are very excited to partner with Dharana Capital and have Vamsi Duvvuri join our board of directors," said Co-founder Abhiraj Singh Bhal.

“Urban Company, with its full-stack approach and focus on partner enablement, has built a strong, capital-efficient and durable business in a challenging local services market,” Duvvuri said.

Investing further in the Indian startup ecosystem?

While the firm didn't reveal the amount, Titan Capital said that all the gains from the Urban Company investment will be reinvested to support the next generation of founders and Indian startups.

The Snapdeal founders have been active angel investors, backing over 300 startups via Titan Capital. They recently raised Rs 200 crore to further invest in promising early-stage startups.

“Urban Company has built an enduring and growing business with a strong foundation. We have been fortunate to be part of this journey from its earliest days and immense credit is due to Abhiraj (Singh Bhal), Varun (Khaitan) and Raghav (Chandra) and their team for building it with great determination, resilience and foresight,” Titan Capital said in a statement.