Home services platform Urban Company has turned profitable in FY25, posting a consolidated net profit of Rs 239.8 crore compared to a loss of Rs 93 crore in the previous year.
The turnaround was primarily driven by a one-time deferred tax asset, topline growth, and operational improvements across its business segments.
Without the deferred tax asset worth Rs 211.2 crore, the company would have posted a net profit of Rs 28.6 crore, according to its annual report. “Profitability has also improved due to operational leverage in fixed costs and driving efficiency across other costs,” it said.
Urban Company saw its revenue from operations jump 38% to Rs 1,144.5 crore in FY25 compared to Rs 828 crore in FY24. Its net transaction value (NTV) on the platform rose 27.6% year-on-year to Rs 3,270.9 crore, with its contribution margin at 19.5%. NTV reflects the total amount of fees paid for the services booked and products sold on the platform, minus the refunds. This led to an adjusted Ebitda of Rs 11.1 crore at a consolidated business level, compared to a loss of Rs 119 crore in the preceding year.
The company has three broad business segments. India remains its strongest market, with the consumer services segment contributing 77% of total revenue at Rs 881.4 crore, up 24.2% y-o-y. Repeat users drove 82% of the NTV in the consumer services business segment as of FY25, the report added.
The company’s newer vertical, Native, which sells water purifiers and smart locks, reported revenue of Rs 116 crore in FY25, up more than 4x y-o-y.
Urban Company narrowed losses in its UAE, Singapore and Saudi Arabia operations to Rs 36.8 crore, with the UAE market turning operationally profitable in FY25. Revenue from this segment rose 64% to Rs 147 crore. However, the company transitioned its Saudi operations to a joint venture earlier this year and no longer recognises revenue from this region.
The improvement reflects better utilisation of its nearly 47,800 monthly active service professionals, who earn 30-40% more than offline peers, according to a RedSeer report.
For FY25, the average service professional earned Rs 26,407 per month net of all costs and fees, while top-performing (top 5%) professionals can earn up to Rs 49,000 monthly, the company said.
Urban Company plans to deepen penetration in existing markets, improve cross-selling, and scale new offerings like InstaHelp, its on-demand househelp service launched earlier this year, which competes with Lightspeed-backed 10-minute home service provider Snabbit.
The company has also filed draft papers for a Rs 19,000-crore IPO, where it will issue fresh shares worth Rs 429 crore, along with an offer-for-sale (OFS) component. The issue will see five of its early backers — Accel, Elevation Capital, Bessemer India, Tiger Global (through Internet Fund V), and VYC11 — partially exit their holdings, eyeing a combined payout of up to Rs 1,471 crore.