UrbanClap has raised $50 million in a Series D funding round led by Hong Kong-based hedge fund Steadview and existing investor Vy Capital that will help the company establish its lead in the home services
Bengaluru, 01 Nov, 2018. RedNewswire/-
UrbanClap helps users hire professionals for home services such as repair and maintenance, home cleaning, homecare and design, packers and movers, beauty, yoga and fitness among others across eight cities.
Steadview Capital invested about $30 million, with the remaining coming from Vy Capital, in what is the largest fundraise by a company in India’s on-demand services space yet.
UrbanClap has raised roughly $110.7 million till date. Some of the other investors in the startup include SAIF Partners, Accel Partners and Bessemer Venture Partners besides Ratan Tata.
UrbanClap functions as a platform for its service partners and customers and the funds now raised will be utilized towards further strengthening this setup while improving the skill sets of the frontline employees who offer the services at their customers’ premises. It will also use the funds to enhance the supply chain of consumables.
UrbanClap also plans to launch in tier-two cities in India, beginning with Chandigarh and Jaipur. The company forayed into UAE in April this year with five services.
The round will see Urban-Clap’s valuation more than double to $480 million following the investment, said one person. The latest investment round will see the firm raise an additional $4 million in a secondary sale of shares and ESOPs for early angel investors and employees.
Abhiraj Bhal co-founder of UrbanClap,said, “The core of our business, which is beauty, cleaning and repairs, is growing faster than before and we will invest deeper in these areas, especially with regard to building supply chains and training of professionals. We know this model works, we now want to be more aggressive in our expansion strategy there.”
UrbanClap last reported a customer base of 3 million and a service professionals’ base of 100,000 covering eight cities including Ahmedabad, Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, Mumbai and Pune.