RV COLLEGE OF ENGINEERING

INTRODUCTION TO MANAGEMENT AND

ECONOMICS

EXPERIENCIAL LEARNING : CASE STUDY ON URBAN CLAP

By
Nithesh kumar j
1RV19CV056
Introduction  to  UrbanClap

• UrbanClap Business Model is a startup with the basic idea that someone sitting at home can hire help for a
varied range of jobs.
• The company is a community of professionals providing their services to whomever it may concern.
• The company was started by Varun Khaitan, Abhiraj Bhal, and Raghav Chandra in 2014.
• Varun and Abhiraj studied together at IIT Kanpur. They shifted to the US, in 2009, to work. Khaitan worked at
Qualcomm and the Boston Consulting Group and returned to India in 2013. Surprisingly, Abhiraj also came back
at the same time.
• The two college friends founded Cinema Box in 2014. This allowed travellers to stream movies on a bus, train, or
aeroplane with the aid of Wi – fi.
• A familiar friend introduced them to the third co-founder, Raghav. He was a computer science and engineering
graduate from the University of California. He worked at Twitter for a bit and shifted back to India in 2013.
• The craving to open an online store made the three friends.
Founding and Funding

• The organization was founded as a need to bridge the gap between service
providers and service receivers. They mostly wanted to take the concept of Yellow
Pages and convert it into an online format.
• The company began as a search and discovery platform but has now become a
belvedere for providing services, training individuals , and maintaining quality
control.
• The company raised a total of $57 million for seven investors in 5 funding rounds.
• The seed capital raised $1.6 million from SAIF Partners, Accel Partners, Kunal
Bahl, and Rohit Bansal.
• The business model of UrbanClap provides the most suited experts for your day to day needs .
• You can hire electricians, yoga trainers, lawyers, engineers, chartered accountants,
beauticians, photographers, interior designers, etc.
• They use an automated matchmaking algorithm that they continue to perfect through heavy
investing.
• To ensure that the business model of UrbanClap is safe for you, they do a background check
and police verification for all the partnered professionals.
• The business model of UrbanClap is as follows:
• 1 – Fixed charged services
• 2 -  Services without fixed charges
1) Fixed Charged Services
For plumbing, electrician work or home cleaning the company accepts the money from the app and then pays the hired help their dues.
2) Services without Fixed Charges
The organization charges the experts for lead generation and sponsored listing.The users do not pay immediately. They get to know the service. The professional pay a fee to accept the request. If the expert can convince the user to buy the service, then monetizing is successful.The user is
given five options from which he can choose his most comfortable option. If the profile of the service provider is not viewed, he gets paid credit. If the algorithm is good, the user has to do less work. The business model of UrbanClap has achieved astounding success in the past few years. The
app recently started using AI (Artificial Intelligence) for the data. It helps them assess the users’ needs better.
Interesting Facts associated with UrbanClap   Business Model

• Launching Date: October 2014

• Founders: Varun Khaitan, Abhiraj Bhal, Raghav
Chandra
• Headquarters: Gurgaon, India
• Brand Statement: Get instant access to reliable,
certified and affordable service
• Number of services: > 100
• User base: > 3 billion
• Employed professionals: > 50,000
• Company valuation: $480 billion
• Monthly order average: 4,50,000
Interesting Facts associated with UrbanClap   Business Model

• A few names in the list before UrbanClap was finalized:

Prowaala, ProTrumpet, Joystation, WorthyFit .
• Ratan Tata, former chairman of Tata Sons Ltd, invested an
undisclosed amount in the company in 2015.
• 75% of supplier applications are rejected to maintain a quality
check
• Abhiraj Bhal – Operations and service provider onboarding
• Raghav Chandra – Technology and product developer
• Varun Khaitan – Marketing and product growth
The organization made its presence in 8 cities in a matter of one
year.

•Delhi
•Hyderabad
•Mumbai
•Chennai
•Pune
•Bengaluru
•Kolkata
•Ahmedabad
They plan on spreading to Jaipur and Chandigarh.
Revenue Streams- How UrbanClap Makes
Money
1) Commission
In this, customers book service-providers from the UrbanClap platform, and
for that service, they pay a fix amount either COD or digital payments. From
the payment to the service provider, there is a commission for UrbanClap as
well.
2) Reverse auction
A service provider using UrbanClap can pay a fixed amount for promoting
their services on UrbanClap. In exchange for this money, UrbanClap team
helps service provider in lead generation and conversions.
3) Advertisements
Businesses, manufacturers, and services use the UrbanClap platform to run
their advertisements in exchange for advertising fee to the company.
Financials of 2019

• The business model of UrbanClap has recorded operating

revenue of INR 116 crore which is 150% up compared to
2018.
• The operating loss increased by 26%, that is, from INR 57
crore to INR 72 crore.
• The company reported that it served 6,20,000 service orders
in April. The annual value of these transactions was around
INR 1,000 crore.
• They recorded around 3.3 billion service orders in 2019,
which is much higher than the 400 million in 2018
Vision and Mission

• The business model of UrbanClap is based on a robust

strategic vision and mission. These statements help the workers to
strive for perfection.
• The co-founder Abhiraj Bhal, said, “Our vision is to empower millions of
professionals to deliver services at home like never experienced before.
• In the last financial year, we took great strides towards that mission,
improving our capabilities in the selection, onboarding, training, and
certification of service professionals. Additionally, we also invested in
areas like product procurement, technology, and financing, establishing
our market leadership.