UrbanClap : One of the Most Successful Hyperlocal Startup in India
The past decade has been the decade of startups, and India has been one of the booming industry for them. From Flipkart, Paytm, Yatra, Oyo, Faasos to Unaccademy, all are some of the names that are the most successful startups in India. Their unusual idea helped them emerge as the biggest companies in India. UrbanClap is a similar startup that is originated in India and was one of the newest ideas in the field of startups.
Early Life & Career
Like every other freshly graduated person, the bug of entrepreneurship had also bitten the co-founders of UrbanClap Abhiraj Bhal, Varun Khaitan and Raghav Chandra. Bhal and Khaitan were college friends, who always thought of starting up their own business. After graduating from the Indian Institute of Technology, Kanpur, the two started working for Boston Consulting Group (BCG) at their U.S. office.
During their time at BCG, Bhal and Khaitan often talked about starting their own business, but none of them had a clue that what they would be doing. Instead, they used to casually ignore the thought. But one fine day, they decided that if they want to do something, they have to start it very next second. They just can’t only daydream about it.
The two had no idea what would be their startup based on, but after working for two years in BCG, they had figured out they want to start an ‘enduring business’. Both were ready to take the plunge. So in 2013, 0they left the job and came back to India to start their business.
Bollywood and movies being the biggest interest in India, Bhal and Khaitan launched their first startup named Cinemabox. The company made entertainment devices for public transport like buses, trains and planes. They invested about INR 10 Lakh in the startup on their own.
On the other hand, Chandra received an engineering degree in Computer Science from the University of California, Berkeley. After completing his college, he worked for some major companies like Infosys, Yelp, and Twitter. Chandra had a similar dream as of Bhal and Khaitan, so he also came back to India, in 2013. Here he started an online-autorickshaw booking platform Buggy.in.
But both the startups could not do well and were shut within seven to eight months of their inception. Despite the failure, the three budding entrepreneurs were not in the mood to quit and were still looking forward to establishing a successful startup.
Most of the times, the better startup ideas are the result of the necessities one faces in real life. This way, the foundation of the startup is always strong, and the results are the most fruitful. After failing once in the business, they were looking for that necessity-driven idea.
Meanwhile, during the wedding of Khaitan’s sister, Khaitan faced a lot of problems in hiring people and local vendors for various tasks. This hit the pinpoint, Khaitan and Bhal were certain that creating a platform, where people could find service providers at a reasonable cost will be their next startup idea.
Founding UrbanClap
The two now needed a tech guy, and eventually, got to meet Chandra through their common friends. The three of them discussed the idea, and after, contributing INR 10 lakh each, they started UrbanClap in October 2014.
They met with professionals from the different fields and shared their idea with them, such that to make them register to UrbanClap. Upon meeting those professionals, the three co-founders got to know that these service providers also faced various problems with their customers and payments.
The Success
The company was an instant hit, As you could hire people from various fields, like a Yoga teacher to a plumber, through the UrbanClap app. In two years, the company expanded to six major cities of India, including Kolkata, Jaipur, Chandigarh. UrbanClaps received its first investment of $10 million from SAIF Partners, and by 2015, it had raised $37 million, SAIF Partners, Accel, and Bessemer Venture Partners, being the major investors. In December 2015, Ratan Tata from Tata group also made an undisclosed investment in the company.
The UrbanClap app lets the customers book a particular service through the app, the professional go to their home and complete the task. The customers make the payments for the service through the app. The company deducts 20 per cent of the payment and rest go to the service provider. This way, many of the registered service providers even make a lakh a month.
In 2018, the company expanded to Dubai, UAE and also closed a $50 million Series D round for expansion. By this time, the company revenue started growing three times a year.
The three co-founders seem to have no plans of going public in the near future. They want to make the company, and its services, future-ready and with their hard work as well as their strategies, it looks quite promising as well.
Yashica is a Software Engineer turned Content Writer, who loves to write on social causes and expertise in writing technical stuff. She loves to watch movies and explore new places. She believes that you need to live once before you die. So experimenting with her life and career choices, she is trying to live her life to the fullest.