Gurgaon-based home services start-up Urban Company (formerly called UrbanClap) has reported a significant achievement in its financial performance. The company's revenue from operations witnessed a robust growth of 45 per cent YoY during FY23, reaching Rs 637 crore from Rs 438 crore in FY22. 

Moreover, its losses before taxation saw a substantial reduction from Rs 514 crore to Rs 308 crore. The adjusted EBITDA loss decreased from Rs 377 crore to Rs 297 crore.

In a press release, Urban Company highlighted that its growth in FY23 was fueled by investments in enhancing service quality, partner training, innovation, brand establishment, and technological advancement. 

The company's efforts yielded remarkable results, with consolidated revenue from operations surging from Rs 438 crore in FY22 to Rs 637 crore in FY23. The focus on operational efficiency and cost control led to a decline in losses from Rs 514 crore in FY22 to Rs 308 crore in FY23.

The company announced that its India business achieved breakeven on an adjusted EBITDA basis in the first quarter of FY24, with negative working capital. It added that this achievement is a significant milestone since India contributes about 90 per cent of its revenues.

The company is focused on enhancing profitability by capitalising on strong unit economics and prudent cost management as it continues to scale. The organization has operations in the UAE, Singapore, Australia and Saudi Arabia.

Urban Company addressed challenges it faced in June 2023 when protests erupted among gig workers, particularly those associated with beauty services. These workers expressed concerns regarding booking cancellations, time off from work, and fluctuations in their ratings on the platform. 

The company clarified that a few partners who failed to meet marketplace standards were asked to discontinue their partnership after multiple notices and re-training. Despite this, Urban Company reiterated its commitment to maintaining an open dialogue with partners and creating a safe and high-quality home services platform.

Urban Company's resilience remained evident in the partner earnings index for the first half of CY23. The top 20 per cent of partners earned an average net income of approximately Rs 40,000 per month after accounting for commissions and related costs. 

Meanwhile, partners delivering fewer than 30 services per month earned an average net income of Rs 32,000. Urban Company is actively assisting partners in improving key performance indicators, such as average ratings, order acceptance rates, order cancellation rates, and the use of genuine products.

Furthermore, the company shared its continuous improvement in customer satisfaction. In FY23, customers provided an average service rating of 4.82 out of 5, based on millions of ratings collected through the company's apps. 

Impressively, over 17 million services received 5-star ratings. On third-party platforms like the Google Play Store and the Apple App Store, its app garnered an average rating of 4.7 out of 5, a testament to the platform's quality and convenience.

Urban Company appointed three independent board members to enhance corporate governance: Dr. Ashish Gupta, Ireena Vittal, and Shyamal Mukherjee. Dr. Gupta is a co-founder of Helion Advisors, while Vittal was formerly associated with McKinsey & Co. Mukherjee was the former chairman of PricewaterhouseCoopers in India.

Abhiraj Bahl, Varun Khaitan and Raghav Chandra founded Urban Company in 2014 as an at-home services marketplace. In June 2021, it secured $255 million (over Rs 1,868 crore) in its Series F funding from Prosus Ventures, Dragoneer and Wellington Management, with participation from Vy Capital, Tiger Global and Steadview. This took its valuation to $2.1 billion at that time.