Urban Company operating revenue up 45% in FY23; losses narrow

Home companies platform Urban Company (UC) reported a forty five% year-on-year leap in working income to Rs 637 crore for the yr ended March 2023, it stated in a weblog submit on Friday.

The Gurugram-based firm noticed its losses earlier than taxes for the yr narrowing to Rs 308 crore in contrast with Rs 514 crore in FY22.

Notably, the Tiger Global-backed firm’s working income grew at a slower tempo in comparison with FY22, when it had surged 75% on yr to Rs 438 crore.

For FY23, the adjusted earnings earlier than curiosity, taxes, depreciation and amortisation (EBITDA) for Urban Company on a consolidated degree stood at Rs 297 crore, down from Rs 377 crore.

“The India business broke even on an adjusted EBITDA basis during Q1 FY24 with negative working capital,” the corporate stated.

“Our India business contributes approximately 90% of our revenues. We remain focused on improving profitability for India and UC as a whole. Our strong unit economics with focused cost control will help us drive EBITDA improvement as the business scales,” it added.

For FY23, Urban Company’s bills – together with direct and assist bills, worker prices (excluding ESOPs) and different bills – rose to Rs 934 crore from Rs 816 crore in FY22. “Our growth in FY23 came on the back of investments in service quality, partner training and enablement, new innovations, brand building and technology development…We also made meaningful progress towards improving profitability, driven by operational leverage in fixed costs and driving efficiency across other costs,” the corporate famous in its weblog submit.

In phrases of income break up, working income from service commissions and charges through the yr stood at Rs 496 crore, a 43% leap from FY22. Urban Company gives companies equivalent to grooming, equipment repairs, plumbing, electrical repairs and pest management.

The firm additionally began promoting personal label merchandise equivalent to water purifiers and sensible locks. It sells different personal label merchandise equivalent to materials for grooming, house cleansing and repairs to its service companions. This section recorded a 55% year-on-year improve in income to Rs 141 crore throughout FY23.

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