UrbanClap raises Rs 165 cr in Bessemer Venture-led funding round.
Bengaluru | Red Newswire | By ET Bureau | 19 Nov 2015 10:56 AM IST.
UrbanClap, a mobile marketplace for services ranging from beauty services at home to wedding photographers, has raised about Rs 165 crore ($25 million) led by Bessemer Venture Partners. Existing investors Accel Partners and SAIF Partners participated in the round.
This fund infusion — that has valued the one-year old startup at more than $100 million — gives the company sufficient cash to dominate the home services business.
UrbanClap has raised a total of about $37 million so far.
In October, ET was the first to report that UrbanClap is in talks with Bessemer for the next round of funding. “This is a winner takes all market — there is no place for second best,” said Abhiraj Bhal, cofounder of UrbanClap. Currently UrbanClap is serving 5,000 customer requests per day, and with an active seller base of more than 20,000 professionals.
UrbanClap is currently present in Delhi NCR, Bengaluru, Mumbai, Chennai and Pune and the company plans to extend its offering to 25 cities and 100 categories over the next one year.
UrbanClap is experimenting with two different business models. For standard services like electrical work or home cleaning, it offers the best available professionals. For specialised services, like photographers interior designers or yoga instructors, UrbanClap takes in the customer request and with an automated match-making algorithm gives a choice of sellers to the customer to pick from.
An increasing number of services startups are aggregating handymen such as electricians and plumbers as well as caterers and tutors, stitching together a highly fragmented market pegged at close to $100 billion.
“It takes a tonne of technology-led processes and supply-side thinking to make it work so fast, that it creates customers and providers delight,” said Vishal Gupta, the MD of Bessemer Venture Partners. “We are impressed with how the Urban-Clap team has aggressively built this mobile marketplace in a short period of time, and a capital efficient manner to become the industry leader.”
Other venture capital funded players in this space including Good-Service, Housejoy, LocalOye, Zimmber, Taskbob, UrbanPro and Timesaverz. Local Oye has raised $5 million led by Tiger Global. HouseJoy, which is in late stage talks to raise their next round led by Amazon, has raised $4 million from Matrix Partners till date.
The services space has already attracted a lot of investor interest in mature markets like the US where startups like TaskRabbit and Thumbtack have attracted large rounds, while Google and Amazon are also testing this space.