Urbanclap co-founders Abhiraj Bhal, Raghav Chandra and Varun Khaitan, have committed to invest $15Mn in the home services portal Urban in Series D round.
Reports state that co-founders will be investing in installments, adding to about $5Mn (INR 35.66 Cr) each. The Urbanclap trio will pull partially paid 5,764 own shares, bringing up a total stake to 17,292 equity shares.
They will pay a premium of INR 61.8K per share and a nominal amount of INR 1 per equity. Currently, the co-founders have funded the first installment of INR 2,882 each, grossing a total of INR 8.6K total investment in the company.
Commenting on the development, Abhiraj Bhal said
“This investment had been in the pipeline for years, and it was decided that the company would make it a part of the company’s recent Series D round.”
“We believed in the future of the company and wanted to make our own investment contributions, but since we don’t have INR 110 Cr. right now in our pockets, we decided to issue these shared on Series D valuation on a partly paid basis.” he added.
Delhi-based UrbanClap is founded in 2014 by Abhiraj Bhal, Raghav Chandra, and Varun Khaitan. UrbanClap provides services like beauty and massage, plumbing, appliance repair, carpentry, cleaning, and painting. The home services company operating model centers on service professionals intending to turn them into micro-entrepreneurs and doubling their earnings by two to three times.
The company has raised $110.7 Mn funding led by major VC firms like SAIF Partners, Accel Partners, and Bessemer Venture Partners. Other principal backers include Ratan Tata, and Snapdeal co-founders Kunal Bhal, Rohit Bansal.
In FY2019, UrbanClap has risen 150% compared to last year with a revenue of Rs.116 crore.
Abhiraj Bhal in a media statement earlier this week,
“Our vision is to empower millions of professionals to deliver services at home like never experienced before. In the last financial year, we took great strides towards that mission, improving our capabilities in selection, onboarding, training, and certification of service professionals. Additionally, we also invested in areas like product procurement, technology, and financing, establishing our market leadership.”
UrbanClap has grossed 3.3 million service orders with a transaction value of orders about Rs.400 crores in FY2019. The company’s annual total transaction value of orders are around Rs.1,000 Crore.