INSUBCONTINENT EXCLUSIVE:
UrbanClap, a marketplace for freelance labor in India and the UAE, has raised $75 million in a new financing round to expand its
business.The Series E round for the four-and-a-half-year old India-based startup was led Tiger Global
Existing investors Steadview Capital, which led the startup’s Series D in December last year, and Vy Capital also participated in the
The startup, which has raised about $185 million to date, said some early investors sold portions of their stake as part of the new
round.Through its platform, UrbanClap matches service people such as cleaners, repair staff and beauticians with customers across 10 cities
in India and Dubai and Abu Dhabi
The startup supports 20,000 “micro-franchisees” (service professionals) with around 450,000 transactions taking place each month,
cofounder and CEO Abhiraj Bhal told TechCrunch.Bhal said that UrbanClap helps offline service workers, who have traditionally relied on
getting work through middleman such as some store or word of mouth networks, to find more work
UrbanClap offers a more direct model, with workers keeping 80% of the cost of their jobs
That, Bhal said, means workers can earn multiples more and manage their own working hours.“The UrbanClap model really allows them to
become service entrepreneurs
Their earnings will shoot up two or three-fold, and it isn’t uncommon to see it rise as much as 8X — it’s a life-changing
Average value of a service is between $17 to $22, according to the company.In recent years, UrbanClap has also started to offer training,
credit, and basic banking services to better support the service workers on its platform
On its website, UrbanClap claims to offer 73 services — including kitchen cleaning, hairdressing, and yoga training
It says it has served 3 million customers.Bhal said that around 20-25% of applicants are accepted into the platform, that’s a decision
based on in-person meetings, background and criminal checks, as well as a “skills” test
Workers are encouraged to work exclusively — though it isn’t a requirement — and they wear UrbanClap outfits and represent the brand
