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Gurugram-based home services marketplace Urban Company has shown significant financial growth and improved efficiency in the fiscal year ending March 2024.
For FY24, the startup reported operational revenue of Rs 827 crore, a 30% year-on-year increase from Rs 637 crore in FY23.
This growth trajectory has been consistent since its inception and even during the pandemic year of FY21 when the company managed to maintain double-digit growth, achieving a revenue of Rs 248 crore.
Reduction in losses
One of the most impressive aspects of Urban Company's financial performance in FY24 was the dramatic reduction in losses. The company's losses decreased by 70% to Rs 93 crore from Rs 312 crore in FY23.
The significant reduction was achieved through improved capital efficiency, better margins, and a reduction in fixed costs. However, it is important to note that these figures are unaudited and may change upon the release of the actual balance sheet in the coming months.
Q1FY25 performance
Urban Company continued its growth into the first quarter of FY25, recording a revenue of Rs 281 crore, which is a 37.3% increase compared to Q1 FY24.
The company's operating EBITDA for this period stood at Rs 7 crore. Additionally, the annualized net revenue from its new water purifier range, launched under the brand name 'Native', was Rs 96 crore for Q1 FY25.
Earnings and partner insights
The company also shared insights into the earnings of its service partners. On average, partners delivering over 30 services a month earned Rs 33,469, with the top 20% earning an average of Rs 42,792.
Notably, female service partners earned 23% more per hour than their male counterparts in the second half of CY23. Urban Company charges around a 25% commission from its service partners, as per reports.
The report comes after investment firm Dharana Capital acquired shares worth over Rs 400 crore (about $50 million) in Urban Company through a secondary transaction.