Urban Company, the Gurugram-based home services platform, reported a net profit of ₹240 crore in FY25, marking its first profitable year since inception in 2014. The turnaround follows a reported loss of ₹92.7 crore in FY24 and comes ahead of the company’s proposed ₹1,900 crore IPO.
According to its annual financial report, the company’s operating revenue rose by 38.2% to ₹1,144 crore for the fiscal year ended March 2025. A significant driver of the reported profit was a ₹211 crore deferred tax credit. Excluding the tax benefit, the company still recorded a pre-tax profit of ₹28 crore, reflecting enhanced cost control and improved operational efficiency.
Operating across India and international markets such as Singapore, the UAE, and Saudi Arabia, Urban Company reported 6.8 million customer transactions over the year across 17 service categories, including salon and spa services, appliance repair, and pest control. The platform reported a total net transaction value of ₹3,115 crore.
Platform Revenue, Product Diversification Drive Growth
Urban Company’s platform-led services remained its core revenue stream, contributing around 65% to total operating income, which climbed to ₹742 crore—a 32.5% increase from the previous year.
Revenue from its Native-branded water purifiers grew sharply, reaching ₹116 crore in FY25 from ₹29 crore the previous year—a nearly threefold jump. Revenue from products sold to service professionals brought in an additional ₹188 crore. Customer membership fees increased by 7.7% to ₹98 crore.
In terms of geography, the company’s India operations contributed ₹997 crore, while international markets added ₹147 crore. Urban Company also earned ₹117 crore from interest income and mutual fund returns, taking its total income for FY25 to ₹1,261 crore, up from ₹928 crore in FY24.
Controlled Spending Supports Profitability
Despite the revenue growth, total expenses rose modestly to ₹1,223 crore, from ₹1,021 crore the previous fiscal. The company maintained cost discipline in its largest expense heads: employee benefit expenses stayed flat at ₹350 crore, which included ₹72.5 crore in ESOP costs, and advertising spend remained unchanged at ₹207 crore.
Urban Company’s India consumer services vertical proved the most profitable, generating ₹113 crore in profit, while its water purifier and international segments posted losses of ₹38.7 crore and ₹33.7 crore, respectively.
IPO and Strategic Moves
Following the return to profitability, Urban Company filed its Draft Red Herring Prospectus (DRHP) with SEBI in April for a ₹1,900 crore IPO, comprising a ₹429 crore fresh issue and a ₹1,471 crore offer for sale by existing investors. This marks a scaled-down version of its earlier ₹3,000 crore public issue plan.
Among recent strategic initiatives, the company launched ‘InstaHelp’, an on-demand domestic help service with 25–30 minute fulfillment, introduced in March 2025. Additionally, Urban Company expanded its Native product line to include smart locks, strengthening its product-driven revenue portfolio.
