Urban Company | Annual Business Summary FY2024

Key Highlights

• Urban Company’s consolidated revenues grew ~30% YoY in FY24 to reach INR 827 crore.
• Profit/(Loss) before Tax reduced from INR (312) crore in FY23 to INR (93) crore in FY24.
• For Q1 FY25, UC recorded a consolidated revenue of INR 281 Cr., a 37.3% YoY growth over the same period last year (Unaudited).
• For Q1 FY25, UC recorded a profit before tax of INR 12 Cr.

In FY24, Urban Company continued to demonstrate profitable growth, with consolidated net revenues growing by 30% to reach INR 827 Cr. This growth was achieved on the back of investments in service quality, partner training and enablement, technology development and the launch of Native RO water purifier devices. We also made meaningful progress towards improving profitability driven by operational leverage and driving efficiency across cost lines.

We made a strong start to FY25 with our consolidated net revenue growth for Q1 FY25 at 37.3% YoY (unaudited). We achieved PBT profitability in the quarter with consolidated PBT margin as a percentage of net revenue at 4.3%. The India business also achieved healthy PBT margins with PBT margin at 12.0%.

We continue to invest in improving consumer experience, building new categories and driving efficiencies across our India and international businesses. Our strong unit economics and cost excellence will help drive operating leverage as the business scales.

Table 1: Key financial metrics for UC Consolidated business

Table 2: Urban Company India overview

Table 3: Walk between Operating EBITDA and Profit / (Loss) Before Tax (Consolidated, IND AS)

Business Innovation: At Urban Company, we are committed to evolving in response to consumer needs and demands. With a decade of experience, we have developed a deep understanding of our consumers’ pain points and have tailored our business solutions to address them effectively. Here are a few innovative solutions we’ve introduced in the past year:

Native RO water purifier: In October 2023, we entered the water purifier industry with the launch of Native, India’s first range of water purifiers that need no servicing for 2 years and are capable of giving an output of 12,000 liters of pure water without requiring a filter change. The Native water purifiers are Made in India and come with state-of-the-art filters, reducing the overall ownership costs for consumers.

Bathroom Subscription Service: Urban Company’s Bathroom Cleaning Subscription is an affordable solution that offers four meticulous cleaning sessions in a month for each bathroom. The subscription mirrors the high standards of our on-demand deep cleaning service, utilizing the same professional tools and effective chemicals to ensure a superior clean compared to regular maid services.

Wall panels: We also forayed into wall panel solutions, an extension of our home decor vertical that includes painting services. Our wall panel offering includes an extensive selection of over 300 panel design options and a variety of looks (such as stone, wood, geometric, neutral, floral, traditional, metallic, and pastel). In line with our commitment to providing sustainable and quality home decor solutions, we offer recyclable wall panels that are Grade A fire resistant, offering superior sound and heat insulation. These panels come with a two-year warranty on materials and installation, ensuring durability and eco-friendliness. Since the launch of the wall panels service we have installed over 1 lakh panels.

ESG Commitments & Progress

Partner Success Program: Ensuring holistic service partner well-being

1. Middle-class earnings:

• According to Urban Company’s latest Earnings Index, average monthly net earnings of service partners delivering >30 services in a month was INR 33,469. Further, the average monthly earnings of the top 20% of Urban Company service partners is INR 42,792, net of all commissions, fees, travel, and product costs. This data was audited by an independent and reputed audit firm — JC Bhalla & Company.
• An analysis of the hourly earnings of the service partners for H2 CY23 showed that female partners earn 23% per hour more than their male counterparts on the platform. The average hourly earnings of female partners net of all commissions, fees, travel and product costs is INR 363, while the same for male partners is INR 294.
• As per a recent third party research by PGA Labs, it was found that UC salon service partners earn hourly net average earnings of ~INR 320, which is 4 times the net hourly earnings (~INR 80) of offline beauticians (those working in a salon/parlor or providing at-home services).
• We have published six editions of our partner earnings index, the previous five editions can be accessed here — Earnings Index H1 CY2023 | Earnings Index H2 2022 | Earnings Index H1 2022 | Earnings Index Q2 FY22 | Earnings Index Q3 FY22
• To the best of our knowledge, we are the first, and likely amongst very few companies in the gig economy globally, to transparently publish the earnings of our gig workers.

2. Social protection benefits:

• Insurance cover: Urban Company voluntarily provides life insurance cover worth INR 6 lacs, disability cover worth INR 6 lacs, accidental hospitalization and more.
• All our service providers have a health insurance plan which provides a cover of INR 1 lac, with up to 12 free medical consultations per year for self, along with the existing benefits of the Group Life and Accidental Insurance cover. For top-performing partners, the policy also provides family medical insurance for spouse and two children and up to 12 free medical consultations per year.
• In FY24, over 1800 service partners benefitted from these insurance covers
• Claims disbursal of over INR 6.29 crores in FY24
• Claims disbursal of close to INR 9.8 crores to date

Apart from this, if there is any emergency support needed that is not covered under the insurance program, we utilize Suraksha Fund, created in partnership with Srinidhi Trust, an NGO, through proceeds from UC employees, management, and other well-wishers.

• Access to formal credit: We also disbursed INR 37.2 crores worth of loans, including personal loans and service kit loans, to Urban Company service partners via third-party non-banking financial corporations (NBFCs) in FY24. This is crucial as it allows our service partners to be part of a formal economic environment that protects them from getting into debt traps with third parties.
• Covid-19 support: For our partners, we had launched Project Kavach — a certification training programme to help them protect themselves and take necessary safety precautions as they resumed their daily lives, vocations and routines. Our Kavach certification program trained partners on personal safety and hygiene standards, PPE usage and service SOPs through a staggered 7-day virtual training program.
• 100% vaccination for two doses for all partners and their families for free
• INR 60 Cr invested in purchase of PPE kits
• INR 2 Cr disbursed under Covid-19 insurance to partners
• 1.8 Cr face masks purchased and distributed
• INR 41 Lacs disbursed as a part of sick leave package to partners who tested positive
• INR 32 Lac disbursed as bereavement support to families of deceased partners
• INR 13 Lac disbursed among partners who needed emergency medical treatment
• Additional weekly income grant of INR 2,000 to partners who needed to self-quarantine. This was to ensure that our partners can get well without having to worry about loss of income.
• We purchased insurance cover for any partner infected with the disease, covering any hospitalization expenses and a per-day allowance.

3. Training & Skilling: Our comprehensive training program equips our service partners with the skills and certifications they need to excel. Our service partners are Skill India-certified and members of the Skill India portal under our MoU with the National Skill Development Council, affiliated with the Govt. of India.

Key stats about our training program:

• Permanent 321k sq ft of space for 175+ training rooms across 14 cities
• Over 280 trainers on board to impart training across all 17 categories
• In FY2024, we trained and upskilled 35,000 partners
• 150+ training centers and a 200+ training team
• Invested INR 138 Cr. in training over FY24 and overall investments of up to INR 524 Cr.

Images above show the Training Centre Footprint of Urban Company, and a sample certificate received at the end of the training in partnership with NSDC and the Ministry of Skill Development and Entrepreneurship.

4. Partner Stock Option Program: As part of our wealth creation initiative for service partners, we launched an industry-first Partner Stock Option Program (PSOP). To date, over 513 Urban Company service partners have benefited from this program.

Image above is from the launch of the Urban Company PSOP inaugurated by Mr. Amitabh Kant

5. Partner Safety: Partners at Urban Company might come across a number of risks in the course of their work, including accidents and injuries, harmful materials, and crime and violence. Urban Company as a platform tries its best to first eliminate such risks through product innovation, SOP adherence checks etc. We invest heavily in educating our partners on how to safeguard themselves against such risks and take appropriate measures to mitigate these risks during onboarding and then reinforce the same regularly post going live on the platform. As part of our SafeSteps initiative, we provide extensive safety-related support ranging from equipment to helplines:

• Dedicated training module on safety protocols while onboarding partners
• Category-specific risks: To ensure partners’ safety, we have given free safety harnesses to our AC Service and Repair Professionals.
• Trust and Safety desk: New Policy to ensure Partners’ safety on the Urban Company platform
• SOS button on the app for any emergency support
• 24x7 Partner Helpline
• Dedicated Women-only helpline for Safety, Powered by the SOS feature

6. Other Initiatives

• Support for Service Professionals Facing Domestic Violence: We have also introduced Project Nidar to support our service professionals facing domestic violence and abuse. This project encompasses all active service partners on the platform, providing them with awareness, assistance, and resources during challenging times. In collaboration with the Invisible Scars Foundation, an NGO dedicated to aiding survivors of gender-based violence, Urban Company will offer counseling, legal aid, and emergency lodging support to affected service partners. Additionally, the company will extend medical support beyond the existing insurance cover of Rs 1 lakh and provide financial assistance of up to Rs 50,000 to those seeking help. This policy applies to all active service partners across Urban Company’s platform in India.
• Celebrating partners’ success through Project Milaap: We host partners and their families in our city offices, acknowledging their hard work and contribution.
• CDR Nishant Singh Scholarship Program: To celebrate the outstanding academic achievements of the children of our partner fleet, Urban Company launched the Commander Nishant Singh Scholarship Program in 2023. Under this program, the company will recognise and provide financial assistance to those children who excel academically and/or secure admissions into prestigious educational institutes or military academies across the country.

At Urban Company, we believe that small steps can make a big difference. The Customer Service Guarantee and calendar marking are our steps towards a more efficient, balanced, and customer-centric service model. We look forward to seeing the positive impact of these initiatives and continuing to serve our customers with excellence.

Partner Impact Stories:

Our partners get a plethora of opportunities at Urban Company when it comes to training, skilling and upskilling.

Anil used to work as a security guard where he used to do a 12-hour shift everyday. Even then he was just earning just ₹15,000 per month and found it difficult to make ends meet. He joined Urban Company in 2019 in the Cleaning category, after which his monthly earnings have doubled to at least ₹30,000-₹40,000 per month. Not only that, Anil has also been able to buy himself a bike and feels that he no longer has to worry about small, daily household expenses that used to keep him awake earlier.

Rekha used to work at a salon where she would earn ₹15,000-₹17,000 per month with incentives. She would even work overtime without extra compensation. Due to this, her husband had to quit his job to look after their baby. However, things changed completely when Rekha joined Urban Company in the Salon category. She now earns up to ₹50,000-₹60,000 every month. Even when there are less jobs, she is able to earn about ₹40,000 on a monthly basis. Today, Rekha is an exceptional 5 star-rated professional who says that she does not have to worry about small expenses anymore. More importantly, Rekha has been able to enroll her child in a good school. And as she can now choose her work hours, her husband has picked up a job and they are now a double income family.

Brundha joined Urban Company in 2019 after shutting down her own salon where she was spending all her time but was not able to make much profit. After joining UC, her monthly earnings rose to ₹1L-₹1.5L and she feels like she’s running her own business, but with even more flexibility. Brundha has now booked an apartment for her family and feels proud to be a UC partner.

Ekta joined Urban Company in 2019. She used to work at a parlour, where she was only earning ₹10,000 per month and had to spend the whole day at the salon, even though there wasn’t much work. At UC, Ekta’s earnings have grown four times to at least ₹40,000 per month and she is happier than ever. Ekta has even bought a new apartment for her family and feels proud to be independent and working by her own will.

Elisian used to work as a spa professional at a resort, where she was earning ₹35,000 per month at the time. When she heard good stories about Urban Company from her peers, she decided that she too wanted to improve her way of life and wanted to grow in her chosen field as a professional. And so, she joined UC in 2019. Elisian is one of the top performers here at UC, with a rating of 4.95. Today, she earns around ₹90,000-₹1L on a monthly basis.

Julie’s growth story has been phenomenal. Before joining UC, she actually worked as a hairdresser, earning ₹15,000 monthly. However, she was unable to manage her household due to the long work hours and had to eventually leave. Even though she approached UC to join a different field — that of spa & massage — she was confident that she wanted to join the platform because she would get to choose her own timings here. The best part is that UC welcomed Julie into its fold, training her thoroughly in various spa techniques. She eventually joined UC in January 2021 and in a matter of a year, is a top performer with a 4.93 rating. Her monthly earnings have also risen phenomenally to around ₹90,000-₹1L.

Parvez has been an Urban Company professional for a stellar 6 years! Before joining UC, Parvez used to run his own repair business, where he had a group of technicians working along with him. He was able to make a profit of around ₹1L every month but due to some problems, his business eventually shut down. At UC, Parvez earns around ₹60,000- ₹70,000 monthly. As per him, it’s still like running his own business but without having to foot major business expenses like office rent etc.

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https://medium.com/uc-design
https://medium.com/uc-engineering
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If you are interested in finding out about opportunities, visit us at http://careers.urbancompany.com