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UrbanClap is the largest online local service provider in India. Be it event management or electrical repairs, mathematics tutors or beauty treatments, painting homes, or income tax filing — they are present in almost every field you need in daily life. Just a click in the app and professionals will arrive at the doorstep for service.
(Note: The on-demand handyman business can be started with the help of UrbanClap Clone with the core features and create your own unique selling point.)
UrbanClap was founded by Varun Khaitan, Abhiraj Bhal, and Raghav Chandra based in Delhi and Gurgaon area. Varun and Abhiraj completed their graduation from IIT Kanpur and were classmates. After that, both of them have worked in the Boston Consulting Group. Abhiraj also studied business in IIM Ahmedabad. Raghav went to the University of California and later worked at Twitter for a while. In the year 2014, they all came together and formed this start-up.
This company is known as the most popular home services organization in India. There is almost no area of service UrbanClap does not cover. Having nine categories present in the app — massage and fitness, appliance repair, home cleaning, moving homes, beauty and spa, painting and renovation, weddings and events, academic tutors, business, and taxes — everything here is just one click away.
Fundings and investors: The first round of funding was held in June 2015, where the company raised 10 million dollars from SAIF Partners and Accel Partners, the famous venture capital firms. In November 2015, during the second round of funding, they raised 25 million Dollars from Bessemer Venture Partners, Accel Partners, SAIF Partners again. Currently, along with these three firms, Ratan Tata, from the Tata Company is also one of the most treasured investors of UrbanClap, along with Vy Capitals.
Business strategy and model
There are many other websites or apps that provide contact numbers for nearby carpenters or plumbers, beauticians, or technicians but where is UrbanClap different from them? In the words of the co-founder Abhiraj Bhal, these sites have a list of middlemen who pass on the job to the respective service providers in return for some commission and thus keeping a very less amount of money for the actual employees. But this organization lets the professionals directly register through them and provides the service directly to the customer as well.
UrbanClap is like an interface between clients and professionals, which takes around 5% to 25% of the commission, depending on the service they are providing. This entire thing is done as a simple business model which is put into action by an automatic match-making algorithm according to the location. This company also runs a background check of the professionals joining their company, including a police verification, for complete customer satisfaction which is the main reason for their increased revenue.
UrbanClap basically follows the transaction commission revenue model. For every service, the providers and the users will give the commission fees to the admin.
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