UrbanClap, a marketplace for freelance utility service provider in India and the UAE, has raised $75 million in a new financing round to expand its business. The funding is part of recently concluded Series E round from Tiger Global. The Gurugram-based company was valued to the tune of $480 million (post-money) after Series D round last November, and has recorded over 94.37 % hike in its marketcap since. With current valuation at $933 Million the firm is soon expected to add its name to the list of startup Unicorns.
According to its corporate filings, the company has allotted preference shares at a premium of Rs 1,17,058 with a fair value of Rs 10 each share while equity shares were issued at a premium of Rs 1,17,067 with a fair value of Re 1.
What is UrbanClap?
UrbanClap is recognized as the fastest-growing startup in India. The startup pitches itself as mobile marketplace for local services, which helps customers hire trusted professionals for all their service needs. UrbanClap enables users find any service professional like a plumber, a wedding photographer, a yoga teacher, or an interior designer. They want to be the go-to platform helping customers’ complete projects that are important to their urban lives, everything from designing their homes to capturing key moments, learning arts, filing taxes, and getting healthier etc. They also provide personal services like beauty, spa, mobile and other appliance repairs etc. Offering 73 services in total.
It was started in 2014, born out of ambitions of three batchmates from IIT Kanpur, Abhiraj Bhal, current CEO, Varun Khaitan and Raghav Chandra. The vision was to create a large tech business solving a primary customer need in India.
UrbanClap currently has more than 10,000 individual service professionals (ISPs) on its platform across categories such as beauty, spa, cleaning, plumbing, carpentry, appliance servicing & repair, and painting. It operates in 10 Indian cities, and two international markets – Dubai and Abu Dhabi. The startup claims to have served more than 30,00,000 customer so far.
In recent years, UrbanClap has also started to offer training, credit and basic banking services to better support the service workers on its platform.
To start with the trio was backed by founders of Snapdeal, Kunal Bahl and Rohit Bansal. The venture is currently backed industries big names such as Ratan Tata. YV Capital, Saif Partners, Bessemer Venture Partner and Accel. Besides raising capital from institutional investors, UrbanClap had also managed to raise money from bluechip investors including Flipkart CEO Kalyan Krishnamurthy and former Flipkart CTO and CPO Mekin Maheshwari.
UrbanClap’s competition is the offline market but no major player has made it to the online market which UrbanClap caters to. Players like Sulekha.com and JustDial are still struggling to pose a serious challenge to it. A report by Ken Research has predicted that the Indian hyperlocal market will grow to reach over $317.4 Mn (INR 2,306 Cr) by 2020. As UrbanClap is near to becoming a unicorn, some serious challenge lies ahead for it. For example, profitability, maintaining and further expanding its market reach to name a few. UrbanClap is a classic yet a typical example of digitization of utility services, providing of employment friendly platform for lakhs of skilled and semi-skilled Indian youth, at the same time dispensing a convenient and affordable professional service to customers.