Urban Company has turned around its financial performance for the year ending 31 March 2025 and has reported its first ever consolidated net profit of INR 239.8 crore. This is a big milestone as the company gets ready for its much awaited initial public offering (IPO) and the company’s fundamentals are strengthening, cost discipline is in place and new growth avenues are opening up.
Urban Company FY25 Results: Revenue Growth, First Time Profit
Urban Company’s revenue from operations grew 38.2% year-on-year (YoY) to INR 1,144.5 crore in FY25 from INR 828 crore in FY24. The company saw growth across its core domestic services, international markets and the newly launched hardware vertical Native.
While the net profit of INR 239.8 crore was boosted by a one time deferred tax asset recognition of INR 211 crore, even on a pre-tax basis the company made a profit of INR 28.6 crore in FY25 as against a loss of INR 92.7 crore in FY24. Adjusted EBITDA also turned positive at INR 11.1 crore as against a loss of INR 119 crore in the previous year.
Urban Company also generated INR 54.6 crore in cash from operations indicating improved working capital efficiency and business health.
Historical Context and Funding Timeline
Founded in 2014 by Abhiraj Singh Bhal, Varun Khaitan and Raghav Chandra, Urban Company (formerly UrbanClap) is a pioneer in India’s on-demand home services space. The company has raised over USD 500 million (~INR 4,330 crore) from global investors including Prosus, Accel, Bessemer Venture Partners, Elevation Capital, Steadview, Tiger Global and Wellington Management.
The company rebranded from UrbanClap to Urban Company in 2020 to reflect its global ambitions and expanded its presence beyond India to Singapore, UAE and earlier Saudi Arabia, Australia and US. It launched the Native hardware vertical in FY23 and introduced InstaHelp, a quick-commerce style home service, in early 2025.
India Market Remains Core Pillar
The India consumer services segment remains Urban Company’s bedrock, contributing INR 881.4 crore or 77% of total revenue in FY25, marking a 24.2% YoY increase. The segment’s Net Transaction Value (NTV) reached INR 2,667.2 crore, with 82% of transactions driven by repeat customers.
The platform hosted 45,619 to 47,800 monthly transacting service professionals in India during FY25. These professionals earned an average of INR 26,407 per month net of costs, while the top 5% earned up to INR 49,000. According to third-party reports, these figures are 30-40% higher than industry standards.
Native Hardware Vertical Scales Rapidly
Urban Company’s hardware division, Native, recorded INR 116 crore in revenue, up more than 4x from INR 28.7 crore in FY24. The vertical, which includes RO water purifiers and smart locks, contributed an NTV of INR 155.5 crore.
This strategic bet allows Urban Company to diversify from pure services to products, capturing greater value per household and increasing customer stickiness. The company intends to scale Native into a standalone D2C brand.
International Operations: Promising but Uneven
Revenue from international markets (UAE and Singapore) grew 63.9% YoY to INR 147 crore. UAE business turned EBITDA positive with a profit of INR 1.7 crore while consolidated international EBITDA loss was INR 36.8 crore.
In FY25, Urban Company exited direct operations in Saudi Arabia, went into a 50:50 joint venture with SMASCO as costs and regulations were too high. This is a broader recalibration of international plans after exits from US and Australia.
Cost Efficiency and Margins
Urban Company had total FY25 expenses of INR 1,223 crore, up slightly from INR 1,021 crore in FY24. Key cost heads:
- Employee benefits: INR 350 crore (flat YoY), including INR 72.5 crore in non-cash ESOP costs
- Advertising and promotion: INR 207 crore
Despite scaling up operations, the company kept marketing and employee spend lean and achieved EBITDA margin of 6.68% and ROCE of 2.46%. The unit economics also improved, Urban Company spent INR 1.07 to earn INR 1.
IPO Plans and Valuation Signals
Urban Company filed its DRHP in April 2025 for a INR 1,900 crore IPO, including a INR 429 crore fresh issue and INR 1,471 crore offer-for-sale (OFS) by existing investors.
Later reports suggest the company may reduce the fresh issue to INR 528 crore. Titan Capital fully exited with 200x return, while Accel, Tiger Global, Steadview and Bessemer will partially offload shares in the OFS.
The IPO could value Urban Company at above INR 20,000 crore based on industry benchmarks and private market estimates.
Competitive Landscape and Regulatory Scrutiny
Urban Company now faces competition from:
- Swiggy’s Pyng: Swiggy’s foray into quick home services
- Snabbit & Pronto: Startups offering 10-minute service response timesAlso, the company still faces challenges on gig worker policies, labor law compliance and platform-worker rights—a hot regulatory topic.
Growth Strategy and Product-Led Future
Going forward:
- Deepen in existing cities
- Enter Tier-2 and Tier-3 markets
- Cross-sell via bundled services and memberships
- Scale Native hardware offerings
- Expand InstaHelp as a “quick-commerce for services” layer
Conclusion
Urban Company FY25 results highlights transition from a loss-making startup to a profitable multi-vertical platform. This is a big moment in India’s tech and gig economy story. With 6.8 million annual transacting users, INR 3,271 crore NTV and a presence in urban India’s households, Urban Company is no longer just a marketplace—it’s an ecosystem ready for public market validation.
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