Snapdeal Founders Earn 200x Return from Urban Company

In 2015, Bahl and Bansal saw the potential in Urban Company, a platform for at-home services that was just starting to gain traction. Their insight paid off handsomely when Dharana Capital, a subsidiary of Vy Capital, bought their stake for $50 million in a secondary acquisition. This deal also allowed some Urban Company employees to sell their stock options.

New Board Member at Urban Company

The Urban Company board is set to appoint Vamsi Duvvuri, the founder and managing partner of Dharana Capital, as a non-executive director once the transaction is completed. Abhiraj Singh Bhal, co-founder of Urban Company, expressed his excitement about working with Dharana Capital and welcoming Duvvuri to the board. Duvvuri praised the company for building a significant, capital-efficient business despite facing tough market conditions.

Supporting the Startup Ecosystem

Titan Capital has seen great success with companies like Credgenix, OffBusiness, and Ola Cabs, thanks to its track record of profitable investments. After Urban Company’s recent achievements, Titan Capital announced, “Urban Company has built a strong and lasting enterprise.” Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chandra deserve immense credit for their vision, resilience, and dedication, and we’ve been fortunate to be part of this journey from the beginning.

Bahl and Bansal plan to reinvest the proceeds from this exit to support new businesses in India. They’ve recently raised Rs 200 crore to fund early-stage ventures. Through Titan Capital, they have invested their personal funds in over 300 ventures.

Urban Company’s Financial Growth

Urban Company reported a revenue of Rs 282-283 crore for the April-June quarter this year, showing strong financial growth. The company is close to becoming profitable this fiscal year, thanks to its operational efficiency and strong market position.

Bahl and Bansal’s Investment Strategy

Bahl and Bansal have achieved significant success by investing in promising businesses and helping them grow. Their impressive portfolio includes ongoing investments in companies like Honasa Consumer, the parent company of Mamaearth, and notable exits. In 2021, the IPO of Honasa Consumer saw shares sold for about Rs 78 crore, generating returns over 100 times the acquisition cost. Their consistent success highlights the effectiveness of their investment strategy and their significant contributions to the Indian startup ecosystem.

Looking Ahead

The remarkable exit from Urban Company not only showcases the investment expertise of Bahl and Bansal but also benefits the broader Indian startup ecosystem. Reinvesting profits into new enterprises helps them grow and supports the next generation of entrepreneurs. This high-profile exit and the reinvestment of proceeds highlight the dynamic and rapidly evolving Indian startup landscape, with experienced investors like Bahl and Bansal playing a crucial role in fostering innovation and growth.