Urban Company revenue soars over 103% to Rs 216 cr in FY20

Home services marketplace Urban Company on Tuesday said its revenue has more than doubled to Rs 216 crore in FY20 over the previous fiscal, driven by strong growth in beauty and home care services. The company, which has seen disruption in business amid the nationwide lockdown, said it is ramping up spending on hygiene and safety in FY21 to ensure that customers and professionals are protected.

In FY20, Urban Company moved from Indian Generally Accepted Accounting Principles (I-GAAP) to Indian Accounting Standard (Ind-As) method. As per Ind-As accounting method, its operating revenue grew from Rs 106 crore to in FY19 to Rs 216 crore in FY20 – growth of 103 per cent. The net booking value of all transactions through the Urban Company platform grew 138 per cent from Rs 385 crore in FY19 to Rs 918 crore in FY20. The company's revenue is largely earned from commission fees on transactions facilitated by the online platform.

"A big growth driver for us during the year was the beauty business. There was some impact of the COVID-19 related lockdown, otherwise the growth would have been even higher," Urban Company co-founder Abhiraj Singh Bhal told PTI. He said, in FY21, the company will invest a significant amount, at least Rs 15-20 crore in safety equipment, Personal Protective Equipment (PPE) for its staff, apart from investment in tech and other areas. He, however, declined to comment on the profit numbers. He noted that these numbers are unaudited and the audited financials will be shared with the Corporate Affairs Ministry in the coming weeks.

Talking about the business, Bhal said its home care services (like appliance maintenance and plumbing) have restarted in all areas except containment zones after the government's move to allow resumption of such services. However, beauty and wellness services - which contribute a significant share of the company's revenue - remains shut in most regions. "As the government considers a graded opening of the economy, we are requesting them to allow beauticians and barbers to deliver homes services across zones, much like they have allowed other self-employed service persons," Bhal said. He explained that over 70 lakh people earn their livelihood through the beauty and wellness industry, many of whom are single bread-winners. "Services at home are delivered in a 1-to-1 format and minimise congregation. This would be similar to the restaurant industry which has been allowed to deliver food at home while dine in operations remain suspended," he said.

Bhal noted that the company has implemented a comprehensive set of eight safety protocols, including the usage of masks and gloves, mandatory use of the Aarogya Setu app, daily temperature checks, single use sachets and disposables and sanitisation of all tools before the service delivery. "In these unprecedented times, we have to re-adjust to 'living with COVID-19' and prioritise hygiene and safety above all else. While no process is foolproof, we are doing everything we can to ensure that our services are hygienic and safe," he said..

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)