Ratan Tata and SAIF Partners-backed on-demad home services company UrbanClap has reduced its net loss to Rs 50 crore in FY18 compared to a loss of Rs 67 crore in FY17, Abhiraj Bahl, co-founder and CEO of the company, told FE.
Ratan Tata and SAIF Partners-backed on-demad home services company UrbanClap has reduced its net loss to Rs 50 crore in FY18 compared to a loss of Rs 67 crore in FY17, Abhiraj Bahl, co-founder and CEO of the company, told FE. Revenue from operations increased more than four times to Rs 45 crore during the period.
Revenue from operations represents commission earned by UrbanClap on services delivered and typically ranges between 10% and 20% of the ticket size. “Our cost has remained largely flat over the past two years while we have seen steady growth in business. In April 2018 alone, we clocked 4,50,000 service requests, with the average transaction value ranging between Rs 1,200 – Rs 1,500 per request. Revenue from commission in the same month stood at Rs 7.25 crore. We earned additional revenue of Rs 1.5 crore by selling of products to our service partners,” Bahl said.
He further added that the gross transaction value of services delivered via the platform stood over Rs 50 crore in April. Urbanclap generates majority of its revenue from three main businesses including beauty and salon services, electronics and appliances repair services besides home repair which includes provision of plumbers, electricians, etc.
The company earns additional revenue by selling products to the service providers enrolled on its platform. It sells beauty products and parts of various appliances including air-conditioners, refrigerators, etc, which are sourced directly from companies.