Urban Company, India’s leading home services marketplace, has turned heads in FY25 by posting a remarkable 38% jump in revenue and its first-ever full-year profit. With an IPO on the horizon, investors are now keenly watching the company’s journey.
In this analysis, we break down:
Urban Company’s business model
Key revenue drivers
FY25 financial performance
Profitability path
IPO prospects
Urban Company connects users with trained service professionals across categories like home cleaning, appliance repair, pest control, and at-home beauty services.
Commission Fees: 20–30% cut from each service transaction.
Subscription Plans: Premium plans for frequent users offering discounted rates and faster service.
Partner Tools & Training: Upskilling programs and product/tool sales to service providers.
| Metric | Value |
|---|---|
| Annual Transacting Users | 6.8 million (+24% YoY) |
| Monthly Active Service Partners | 48,000 |
| Repeat Customer Share | 82% |
| Average User Rating | 4.81 / 5.0 |
| Average Monthly Earnings (Partners) | ₹26,400 (+16% YoY) |
High customer satisfaction and strong partner earnings reflect a robust, scalable model.
| Metric | FY24 (₹ Cr.) | FY25 (₹ Cr.) | YoY Growth |
| Operating Revenue | 828.0 | 1,144.5 | +38% |
| Other Income | 99.9 | 116.2 | +16% |
| Total Income | 927.9 | 1,260.7 | +36% |
| Metric | FY24 (₹ Cr.) | FY25 (₹ Cr.) | Change |
| PBT | -92.7 | 28.6 | Turnaround |
| PAT | -92.8 | 239.8 | +₹332.6 Cr. |
Note: PAT includes ₹211 Cr. in deferred tax credit; core PBT is still positive.
EBITDA Margin: Improved to ~8% (negative in FY24)
EPS: ₹1.66 (vs. -₹0.66 in FY24)
Cash Flow from Ops: ₹54.6 Cr. (vs. negative in FY24)
| Metric | FY24 | FY25 |
| EPS (Basic) | -₹0.66 | ₹1.66 |
| Debt Position | Minimal | Minimal |
| Lease Liabilities | ₹1,199 Cr. | ₹1,199 Cr. |
| Cash Flow from Operations | Negative | ₹54.6 Cr. |
Cost Efficiency: Employee expenses remained flat despite strong revenue growth.
Partner Utilization: Increase in average earnings led to lower churn and higher retention.
Category Expansion: New offerings like AC servicing, appliance repairs added scale.
Urban Company is eyeing a public listing in late 2025 or early 2026, with a projected valuation between $3–4 billion.
High customer loyalty (82% repeat users)
Scalable, asset-light business model
Diversified revenue sources
Regulatory Uncertainty: Gig worker policies remain a grey area.
Competitive Landscape: Intense local and regional competition could impact margins.
Urban Company has entered a new phase of growth — profitable, capital-efficient, and IPO-ready. With strong financial metrics, deep market penetration, and a loyal customer base, it is poised to be a dominant player in the hyperlocal services space.
✅ Scalable Model: Tech-driven, asset-light operations with high retention.
✅ IPO Watch: DRHP expected by late 2025.
⚠️ Monitor Risks: Regulation and competition could impact future margins.
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