Urban Company has achieved profitability at the profit before tax (PBT) level on a consolidated basis as reported by two sources familiar with the company’s financial performance. This development is expected to facilitate its upcoming public listing, tentatively scheduled for the second half of 2025.
One of the sources, preferring anonymity, stated, “Urban Company’s India operations have been EBITDA profitable since October-November 2022. However, on a consolidated level, the company recorded slightly over Rs 7 crore in profit before tax (PBT) in April 2024.”
Regarding the performance of its India unit, which contributes more than 90% to its business, it recorded over Rs 11 crore PBT in April. The source further added, “Urban Company has also achieved breakeven in the UAE, but it is facing losses in Singapore and Saudi regions due to their new market status.”
The profitability demonstrated in April indicates a significant reduction in losses for Urban Company during FY24. Another anonymous source mentioned, “The company’s losses for the previous fiscal year remained below Rs 100 crore.”
In the fiscal year ending March 2023, the 10-year-old company reported a loss of Rs 308 crore against revenue of Rs 637 crore. According to TheKredible, a startup data intelligence platform, Urban Company managed to reduce its losses by 40.1% in FY23 compared to FY22.
Despite attempts to reach out, Urban Company did not respond to queries.
Urban Company operates as a marketplace for home services and beauty salons across more than 30 cities in India, with operations in select foreign markets. Although it achieved unicorn status in June 2021 with a valuation exceeding $2 billion, it has not raised any primary funds in the past three years. In December 2021, it repurchased employee stocks (ESOPs) at a valuation of $2.8 billion.
While sudden improvements in financials often raise concerns regarding IPO plans, Urban Company’s progress has been gradual, reflecting a series of strategic changes implemented over the years. These include initiatives like white label or proprietary products, service contracts for predictable cash flows, a focus on recurring users, and improved management of partner relationships. While its international ventures pose challenges due to varying market conditions and regulations, its performance in India seems poised for scrutiny in the capital markets, serving as a gauge for the blue-collar gig economy’s state in the country.