Urban Company is a home service platform that announced a 37.8 percent increase in its total revenue to Rs 930 crore in the first nine months of FY25. The startup provides various home services from booking for beauty treatments, salon, and skin care to AC repair, electrical work, and pest control. These subscription and commission-based models are the company’s major source of revenue. The startup offers an online platform to help users access multiple professional services from electricians to beauticians in one place. 

The firm also earns its income through selling products or white-label products for salon services. The revenue from these services accounted for 75 percent and increased by 31 percent to Rs 639 crore in the nine months for FY25. The company reported an increase in profit to Rs 27.1 crore for this financial year. The firm plans to maintain its profit by minimizing operating expenses. Reducing employee benefits appears to have reduced the losses by a huge margin while turning the firm profitable.

The company has secured over $453 million across multiple funding rounds, including 190 million raised during its series F funding round. This Accel-backed startup reported an annual revenue of Rs 928 crore in 2024. Urban Company offers an app-based platform to provide multiple local services with the best user experience. This platform allows users to reserve from several local services such as home repair, beauty, pest control, and more. 

The Gurugram-based company also earns revenue from interest income and other services. The sale of products accounts for 207 percent of total operating revenue in FY25. The supply of panels and RO systems also increased by 7 times to Rs 75.8 crore in the nine months of FY25. The interest income contributed Rs 84.2 crore and brought the overall revenue to Rs 930 crore in the 9M FY25. 

The firm’s total expenditure increased by 23.2 percent to Rs 903 crore in FY25. Meanwhile, the employee benefits accounted for 28.5 percent of total expenses at Rs 258 crore for this fiscal year. The incentive for professionals, warehousing, advertising, employee benefits, and legal costs increased the total expenditure. The cost of advertisement and marketing increased and crossed Rs 160 crore in the first nine months of FY25. The product procurement costs stood at Rs 148 crore in the same period. 

The startup plans to increase its customer base and enhance its market presence while expanding its supply chain. Urban Company posted a total current asset of Rs 1,514 crore in 9M FY25. The EBITDA margin became positive and stood at 6.78 percent in the nine months of FY25, while the ROCE was around 1.84 percent in the same period. Urban Company faces competition from other companies in the same market segment, such as Houz Expert and Easy Fix. 

Conclusion:

Urban Company announced a 38 percent increase in total revenue to Rs 930 crore for the nine months of FY25. This home services offering firm delivers local services, including salon treatments and wall panel installation, through its online platform. The commission earned from these services is the firm’s major source of revenue. The startup reported over 23.2 percent increase in its total expenses to Rs 903 crore in FY25. The above article mentioned Urban Company’s financial results for the nine months of FY25.