Services marketplace UrbanClap has raised $21 million in a Series C round of funding led by Vy Capital, with participation from existing investors SAIF Partners, Accel Partners and Bessemer Venture Partners, reports Livemint. UrbanClap co-founder Abhiraj Bahl told the publication that the existing investors also bought shares of some employees and a part of the stake held by Snapdeal founders Kunal Bahl and Rohit Bansal for about $1 million. The company will use the funds to expand to more cities, invest in technology and bring new vendors on the platform.
It’s worth noting that just a few months back, in April, the company had raised Rs 20 crore in debt funding from Trifecta Capital. Also note that Vy Capital is a significant investor in Zomato – here and here.
For UrbanClap, the first half of 2017 is shaping up to be quite similar to 2015, when the company raised funding over four rounds through the year:
April 2015: raised seed funding worth Rs 10 crore from SAIF Partners, Accel Partners, and Kunal Bahl and Rohit Bansal of Snapdeal.
June 2015: raised $10 million from existing investors Accel Partners and SAIF Partners.
November 2015: raised Rs 165 crore ($25 million) in funding led by Bessemer Venture Partners, with participation from existing investors Accel Partners and SAIF Partners.
December 2015: raised an undisclosed amount of funding from Ratan Tata in his personal capacity.
Founded in 2014, UrbanClap claims to currently offer 107 types of services on its platform. It’s available in 16 cities, including Delhi NCR, Bangalore, Mumbai, Chennai, Hyderabad, Pune, Ahmedabad, Kolkata, Noida, Greater Noida, Faridabad, Gurgaon, Ghaziabad, Thane, Navi Mumbai and Secunderabad. As of December 2015, the company claimed to serve 5,000 customer requests daily.
Consolidation among services marketplaces
The home services marketplace segment has witnessed a lot of consolidation in recent times:
- In May this year, Quikr acqui-hired on-demand home services provider Zimmber for a reported $10 million. Quikr already has a services vertical called QuikrServices. In fact, Quikr had acquired a number of smaller players, including StayGlad, Salosa and Zapluk, for its beauty services vertical AtHomeDiva.
- Zimmber itself had acquired FindYahaan to strengthen its white collar service listings, in February last year.
- In the same month, on-demand services company HouseJoy shut down operations in seven of the 12 cities it was operational in, and also reduced its workforce by 50%. Apparently, the company now wants to focus on its beauty segment which accounts for about 30% of its revenues.
- Earlier, in December 2015, Paytm had acquired Gurgaon-based services marketplace Near.in for $2 million.
- Some of the other players in this segment include LocalOye and Timesaverz.