Urban Company will comprise businesses like Spa, Beauty, Grooming, Repairs, Cleaning, and Repairs. It is a way of showcasing differentiated experiences and value propositions for each sub-vertical.
Urban Company will continue as one master app, though. “This repositioning helps our customers rediscover use cases on the platform that they may have earlier missed and drive cross-category repeats,” said Abhijraj Bhal, CEO, Urban Company.
The goal is to increase a customer lifetime value (CLV) by 15-20% and increase stickiness. CLV represents the total amount of money a customer is expected to spend on the platform during his/her lifetime.
“Eventually, the thesis is that each of these sub-brands over a period of time have their own identity, microsites or apps,” Bhal said.
It also comes at a time when the company has decided to rebrand to an internationally acceptable name given its expansion into the UAE, Singapore and Australia over the last two years.
Urban Company runs a full-stack marketplace platform — meaning it manages and monitors the quality of the supply end-to-end and provides the 25,000 active partners on its platform credit, training, procurement, technology, and insurance.
In August, the company raised $75 million in a Series E round led by US-based investment fund Tiger Global Management, valuing it at close to $1 billion. The Gurugram-based firm has cumulatively raised about $200 million from investors including SAIF Partners, Accel, Steadview Capital, and VY Capital.
The company was founded in 2014 by IIT Kanpur and BCG alum Abhiraj Bhal and Varun Khaitan, along with Raghav Chandra, an alumnus of the University of California. It started as a marketplace for professionals ranging from beauty and repairs to wedding photographers, and lawyers, has over the last one year narrowed its focus to select categories, but with a controlled consumer experience approach.
Its first breakout category was beauty for women at home. “Since then, we have used our beauty scale playbook and scaled other categories (spa, plumber, carpenter, electrician cleaners) in a similar full-stack manner,” Bhal said.