Urban Company reported a 38 per cent rise in operating revenue to ₹1,144.5 crore for the financial year 2024-25 (FY25), as it gears up for a public offering.
The Gurugram-based home services platform turned profitable during the year, posting a net profit of ₹240 crore, compared with a ₹93 crore loss in the previous financial year, according to its annual report released on Wednesday.
Urban Company reported a sharp turnaround in its bottom line for FY25, aided by a ₹211 crore deferred tax credit. Even excluding the credit, the at-home services platform posted a pre-tax profit of ₹28.6 crore. This turnaround comes on the back of strong revenue growth and operational efficiency.
“Cash generated from operating activities was ₹54.6 crore,” said Urban Company CEO and Cofounder Abhirah Singh Bhal on X.
Urban Company had reduced its losses by 40.1 per cent to ₹308 crore in FY23, whereas the figures stood at ₹514 crore in FY22, according to Entrackr.
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The company said it served 6.8 million transacting users over the past financial year and worked with an average of 48,000 active service partners each month. The platform reported that 82 per cent of its net transaction value came from repeat customers, reflecting high retention. Customer satisfaction remained strong, with an average rating of 4.81 out of 5.
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Service partners earned an average of ₹26,400 per month, up 16 per cent from the previous year, according to the company. Urban Company’s operations now span 51 cities across India as well as international markets, such as the UAE and Singapore. Its overseas business generated ₹147 crore in revenue, an increase of nearly 64 per cent year-over-year.
According to the Redseer Report, the home services sector in India had a total addressable market of $59.2 billion in 2024 calendar year (CY) and is projected to grow to $97.4 billion by CY29, at a CAGR of 10–11 per cent. The online full-stack platforms, delivering integrated, end to-end service experiences are projected to grow at a CAGR OF 20–22 per cent between CY24 and CY29.
But the segment is still in the early stages of growth. In CY24, only 2 per cent of Indian households used online home services, compared to about 21 per cent in China and over 50 per cent in the US, according to the Redseer Report.
“We believe we have only scratched the surface and will look to drive sustained long-term growth,” said Urban Company co-founders Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chandra in the report.
The firm recently reduced the size of its planned capital raise to ₹528 crore as it moves closer to its initial public offering, citing prevailing market conditions. The latest figure is a sharp cut from earlier plans to raise around ₹3,000 crore and marks a revision from its April draft prospectus, which proposed a ₹1,900 crore issue with ₹429 crore in fresh capital.
