Urban Company raises $50 million from Dharana Capital

Home services provider Urban Company has raised $50 million from Dharana Capital, an India-focused growth-stage technology and consumer investment firm.

The VC counts Zopper, Lentra, NoBroker and Itilite as its portfolio startup. 

Dharana Capital invested in Urban Company through a secondary transaction, buying shares worth Rs 400 crore from employees and other shareholders, making this transaction the largest ESOP liquidity in Urban Company's history.

Vamsi Duvvuri, Founder and Managing Partner of Dharana Capital, will also join the board of Urban Company as a Non-Executive Director.

The CEO said Urban Company’s India business has been profitable, and UAE, its second-largest market, is almost at the cusp of profitability.

In FY23, the startup had reported a 45% year-on-year jump in operating revenue to ₹637 crore. Its loss before taxes for the year narrowed to Rs 308 crore compared with ₹514 crore in FY22.

The home services provider is on track for an initial public offering in 2025 and will soon announce a new independent director on its board, the CEO said at the press conference.

Urban Company is currently processing an average of 2.2 million orders as of this quarter, with an average order value of ₹1,290.

The company started selling water purifiers and smart locks under the brand name Native last year.