Urban Company Achieves Profitability, Rs 7 Cr PBT in April

Urban Company, a prominent player in the home services and beauty salon marketplace, has achieved profitability at the PBT (profit before tax) level on a consolidated basis, according to sources familiar with the firm’s financial data. This development may pave the way for its public listing, which is expected to take place in the second half of 2025.

Sources revealed that Urban Company’s India business has been EBITDA-profitable since October–November 2022. However, on a consolidated basis, the company reported a profit before tax (PBT) of slightly over Rs 7 crore in April 2024.

The firm’s India unit, accounting for more than 90% of its business, recorded over Rs 11 crore in PBT in April. While Urban Company has achieved breakeven in the UAE, it continues to incur losses in the Singapore and Saudi regions, attributed to the relative newness of these markets.

The April profitability signals a significant reduction in losses for Urban Company, amounting to over two-thirds in FY24. Sources indicated that the company’s losses for the previous fiscal year remained under Rs 100 crore.

Urban Company, established over a decade ago, reported a loss of Rs 308 crore against revenue of Rs 637 crore in the fiscal year ending March 2023. According to data from TheKredible, the startup also managed to reduce its losses by 40.1% in FY23 compared to the previous fiscal year.

Queries sent to Urban Company regarding this development did not receive a response.

With a presence in over 30 cities in India and operations in select foreign markets, Urban Company entered the unicorn club in June 2021 with a valuation exceeding $2 billion. Despite not raising primary funds in the past three years, the Gurugram-based company bought back employee stocks (ESOPs) in December 2021 at a valuation of $2.8 billion.

While the improvement in financials often raises eyebrows in anticipation of an IPO, Urban The company’s journey to profitability has been marked by gradual changes and strategic initiatives over the years. The company’s focus on white-label and own-label products, service contracts for predictable cash flows, customer retention strategies, and partner relationship management have all helped to improve its financial performance.

Regarded as a barometer for the blue-collar gig economy in India, Urban Company’s sustained efforts to refine its business model have garnered recognition. While challenges remain in its international ventures due to varying market conditions and regulations, the company’s solid performance in India sets a promising stage for its potential entry into the capital markets.

Source: ENTRACKER

Disclaimer: This information is covered based on the latest research and development available. However, it may not fully reflect all current aspects of the subject matter.

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