Urban Company turns profitable with Rs 28.5 crore profit in FY25, ad spend surges to Rs 207 crore

IPO-bound Urban Company has announced its annual result for the fiscal year 2025. The company turned profitable after reporting a loss of Rs 98.7 crore in fiscal year 2024.

According to a report by Entrackr, the personal and home services company posted a profit of Rs 28.5 crore in fiscal year 2025.

The company's advertising and promotion expenses also surged to Rs 207 crore during the year. The company spent Rs 173 crore in the year-ago period.

Urban Company has witnessed a 38.2% rise in its revenue growth year-on-year to Rs 1,144 crore. Platform services emerged as the largest revenue driver for Urban Company, contributing 64.8% of its total operating income to Rs 742 crore. Revenue from customer memberships grew by 7.7% to Rs 98 crore in FY25.

IPO-bound Urban Company ramps up sales, ad expenses to maintain brand strength, consumer retention

Urban Company, which has expanded operations overseas, gained Rs 147 crore from its international operation. Notably, the services company generated Rs 997 crore of operating revenue in India alone.

Urban Company has planned to raise a total of Rs 1,900 crore through the IPO, of which Rs 80 crore will be allocated for marketing activities--Rs 18 crore will be deployed in FY26, Rs 31 crore in FY27, and Rs 31 crore in FY28.

IPO-bound Urban Company's top earners: A glimpse into CXOs paychecks

The Gurugram-based services firm ramped up its sales, promotion, and ad expenses in the past three years significantly. In FY22 Urban Company spent Rs167.7 crore on ads, in FY23 Rs189 crore, and in FY24 Rs173 crore. As per the DRHP, Urban Company's ad expenses in the first nine months ended on 31 December 2024 stood at Rs131 crore.

According to the Redseer Report, the home services market in India is expected to grow at a 10-11% CAGR from 2024 to 2029, driven by increasing urbanization and rising income.