- Urban Company, formerly known as UrbanClap, reported a double jump to Rs 242 Crore in its full-year operating revenue on Tuesday, driven by strength in its beauty business.
Urban Company, formerly known as UrbanClap, reported a double jump to Rs 242 Crore in its full-year operating revenue on Tuesday, driven by strength in its beauty business. As per the I-GAAP accounting standard, operating revenue rose to Rs 242 crore in the full year ended March 31, from Rs 116 crore a year earlier.
The company said its beauty and wellness segment-which accounted for almost 55 percent of the year’s overall sales-had been under pressure due to the lockdown over the last few months of the financial year. Such services are not yet available, but it has been authorized to restart the home repair and maintenance services of the startup.
The net booking value of transactions across the website of the company increased by 138 percent to the year’s Rs 918 crore. The company earns largely money from commission fees on every transaction that is made on its online platform.
Abhiraj Singh Bhal, co-founder of Urban Company said that breakeven is still some distance away for the company and that the upcoming financial year will go beyond just the company’s financials. “If COVID-19 had not happened, we would have targeted it in FY21 but not very long at this point,” he said.
The startup expects changes in people’s coronavirus-led lifestyle to have a positive impact on its business in FY 2021. In the medium term, its core businesses-beauty and home repairs and maintenance-could see a positive impact. “The beauty industry is going to experience a very systemic tectonic change to ‘at-home.’ People would now choose to get beauty services in their home’s regulated climate, as opposed to going out to a salon,” Abhiraj said.
Recently, the organization carried out a waitlist system for customers who needed beauty services after the operations were resumed. To date, Urban Company said more than 1.5 lakh clients have joined the queue.
It urged the government to consider lifting the ban on its beauty services at home, saying the resumption would help restore the livelihoods of its beauty partners and technicians.
“More than 70 lakh people earn their living through the beauty and wellness industry, many of whom are single bread-earners. Home-based services are delivered in a 1-to-1 format and minimize congregation, which would be similar to the restaurant industry which has been allowed to deliver food at home while dine-in operations are suspended,” he added.
Abhiraj said the ‘health’ part of operating during the lockdown, which involves temperature controls and verifications, was something that helped the company compete with the gray market, on price versus quality, for its home repair and maintenance business.
‘Having an individual from Urban Company gives you that quality assurance. So, once the pandemic peak is over, in September or so, I expect a significant change in both beauty and home maintenance.’ For the financial year 2021, Urban Company said its number one goal is to protect the health and safety of its customers and service partners.
Urban Company was founded in November 2014 and offers services such as beauty and spa at home, cleaning, plumbing, carpentry, appliance repair, painting, etc. through its mobile app and web site. It operates in 22 towns throughout India, the UAE, Australia, and Singapore. The firm has nearly 30,000 business members, including more than 10,000 beauticians and barbers. It helps them with preparation, financing, acquisition of goods, insurance, technology, etc. Urban Company moved from I-GAAP to accounting method IND-AS in FY20.