UrbanClap raises $25 mn from Bessemer, Saif, Accel Partners

UrbanClap, a mobile-based services marketplace, has raised $25 million in a series B round of funding led by Silicon Valley venture fund Bessemer Venture Partners, an early backer of Skype and Pinterest, along with participation from existing investors SAIF Partners and Accel Partners. The Gurgaon-based company previously raised seed funding of around $1.5 million (Rs 10 crore) from SAIF Partners, Accel Partners and Kunal Bahl and Rohit Bansal of Snapdeal, in April this year. With this round of investment, the company is valued at $100 million. For specialised services, like photographers interior designers or yoga instructors, UrbanClap takes in the customer request and with an automated match-making algorithm gives a choice of sellers to the customer to pick from.

Founded in October 2014, UrbanClap has grown rapidly over the past year and now claims to be the largest services marketplace in India.

The company is expected to use the funds to strengthen its leadership position in the hyperlocal market and expand to more cities in India. UrbanClap sends them business worth $200 Mn annually (current run rate), from small carpentry jobs worth INR 200, to a large interior designing assignments worth several lakhs. “This is a victor takes all market there is no place for second best”, said Abhiraj Bhal, cofounder of UrbanClap. The company, which operates in Delhi, Bengaluru, Mumbai, Chennai, and Pune, now has more than 20,000 service providers across 75 categories, and processes 5,000 customer requests a day through its mobile apps and site. By the same time next year, it is aiming to have over 100,000 professionals on the platform and serve over 100,000 customers a day.

Vishal Gupta, MD, Bessemer Venture Partners said, “The UrbanClap founders have built a great team, which is executing very aggressively”. However, over the past few months with the market tightening this category has seen some players unable to shore up further capital while others lke LocalOye laid off employees to cut costs paving way for consolidation.