Executive Summary 

Urban Company engaged Redseer, India’s leading strategy consulting firm, to support its DRHP filing for IPO through a comprehensive market study – developing a detailed market model, uncovering growth opportunities across key segments, and identifying strategic levers to win in the home services category. 

About the Client 

Urban Company is the leading online full-stack home services and solutions platform in India as of FY2025, based on net transaction value. They operate in 59 cities across India, the United Arab Emirates (“UAE”), Singapore, and the Kingdom of Saudi Arabia (“KSA”). Operating in a market that remains largely offline and fragmented, with online penetration below 1%, Urban Company has positioned itself as enabling delivery of a quality–driven, standardised and reliable service experience online. Additionally, Urban Company has also expanded into home solutions with the launch of water purifiers and electronic door locks, respectively, under the brand name ‘Native’. 

The Strategic Imperative

• Analyse shifting consumer behaviours and macroeconomic factors driving demand in India’s home services market. 
• Estimate market size across key service categories, including cleaning, beauty & wellness, handymen, appliances & repair, home renovation, based on usage frequency and annual household spend across city tiers in India, UAE, KSA, and Singapore. 
• Evaluate the structural fragmentation of the sector and identify core enablers required to achieve scalable growth. 
• Define the Serviceable Addressable Market (SAM) for Urban Company across categories, anchored in current offerings and future scalability. 

Outcomes & Impact 

• Identified key demand drivers and macro shifts (e.g., rising incomes, digital discovery, etc.) that informed a future-ready growth narrative for the home services sector. 

• Structured a highly unorganised market spread across fragmented categories, informal supply chains, and diverse consumer segments to enable a clearer understanding of opportunities and enabled a granular understanding of market potential by each segment, helping stakeholders identify high-growth pockets. 

• Assessed the online home services market and informed that the lion’s share of the market lies with the metro cities, while the rest of the cities are expected to drive growth going forward. 

• Articulated the structural frictions being solved by online full-stack platforms, across discovery, delivery, and trust, establishing their right-to-win in a traditionally unorganised sector. 
• Demonstrated how full-stack platforms create superior value for service professionals through better earnings, consistent demand, training pathways, and long-term career potential. 
• Flagged key risks to scaling the model, including labour cost inflation, service quality control, and disruptive competition, guiding strategic focus areas and investment decisions. 

What This Means for the Industry 

India’s home services market, valued at ₹5.1-5.2 trillion (~US$60 billion) in FY2025, is undergoing a foundational transformation driven by rising urbanization, shifting lifestyles, and growing demand for convenience and professionalism in everyday services. With projected growth at 10-11% CAGR to reach ₹8.4-8.6 trillion (~US$100 billion) by FY2030, the sector is transitioning from a largely informal network of providers to a more structured ecosystem. 

With rising expectations around speed, reliability, and service quality, especially in metro and digitally evolving cities, online full-stack platforms are primed to lead the next phase of growth. Notably, even in top metros, considerable untapped potential remains, underscoring the early stage of market penetration and the significant headroom for growth. These platforms are not only solving for user-side friction (discovery, trust, fulfilment) but also unlocking better earnings, training, and career visibility for service professionals. With deepening digital adoption and rising willingness to pay for hassle-free experiences, the home services industry is poised to formalize rapidly, bringing standardization, accessibility, and consistent service quality across city tiers and income segments. 

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