UrbanClap Technologies Pvt. Ltd, a Delhi-based company that operates a home services marketplace, has raised $50 million (Rs 348 crore) in a Series D funding round led by Hong Kong-based hedge fund Steadview Capital and existing investor Vy Capital.
The company will use this capital to get more customers and service partners on board, it said in a statement. In addition, it will use the funds to build its team, improve training capabilities and enhance the supply chain of consumables. UrbanClap also plans to launch its services in a host of Tier-II cities.
Besides the primary capital, the company is also facilitating a secondary sale of stock options and shares worth about $4 million for its employees and early angel investors.
Back-of-the-envelope calculations show UrbanClap raised the funding at an estimated valuation of $445-450 million. This is nearly a three-fold rise from the $165 million estimated valuation at which the company had raised its Series C round last year.
UrbanClap was founded in 2014 by Abhiraj Bhal, Varun Khaitan and Raghav Chandra. It is an online marketplace for local services such as repair and maintenance, packers and movers, event management, health and wellness, and salon.
“Their (UrbanClap’s) tech-centric approach of building quality supply in a trust-deficit market is solving a big consumer need, and enabling service professionals to be micro-entrepreneurs. The company’s focus on customer experience stands out, and we think very highly of the founders and the team,” said Ravi Mehta, founder and managing partner at Steadview Capital.
The company offers more than 100 services across 12 Indian cities including Delhi-NCR, Bengaluru, Mumbai and Chennai. It made its international debut earlier this year when it launched services in Dubai.
UrbanClap claims to have more than one lakh trained and skilled professionals, including plumbers, electricians, wedding photographers, makeup artists and chartered accountants, on the platform and says that they have served more than 3 million customers since launch.
“Today, approximately 15,000 service professionals earn their livelihood through the UrbanClap platform. We would like to grow that number 100 times over the next five years... This will require strong execution, and ahead of the curve investments into our technology platform and operational leadership,” co-founder Chandra said.
The Ratan Tata-backed company reported an increase in its operating revenue and pared its loss for the financial year 2017-18. It reported operating revenue of Rs 46.7 crore for 2017-18, up from Rs 11 crore the year prior. Its net loss shrank to Rs 56.49 crore from Rs 67.18 crore.
In June 2017, the company raised $21 million in a Series C funding round led by Vy Capital.
In its Series B funding round, in November 2015, it had secured $25 million from Bessemer Venture Partners, Accel Partners and SAIF Partners.