Snapdeal co-founders Kunal Bahl and Rohit Bansal, who also manage the investment firm Titan Capital, have exited from the Gurugram-based services platform Urban Company, achieving a remarkable 200-fold return on their initial investment. They had invested Rs 57 lakh in the at-home services platform in 2015. Upon their exit, the total proceeds from this investment amounted to Rs 111 crore, as reported by Economic Times.
Here’s how this happened
But who purchased their stake?
According to the report, Bahl and Bansal’s stake was acquired by Dharana Capital, an offshoot of Vy Capital. The transaction was part of a $50 million secondary deal involving Urban Company. Vamsi Duvvuri, founder and managing partner of Dharana Capital, will join the Urban Company board as a non-executive director.
A few quotes are to be highlighted here:
- “We are very excited to partner with Dharana Capital and have Vamsi Duvvuri join our board of directors,” said co-founder Abhiraj Singh Bhal.
- “Urban Company, with its full-stack approach and focus on partner enablement, has built a strong, capital-efficient, and durable business in a challenging local services market,” Duvvuri added.
Giving Back to Start-Ups and Enriching the Future
A very important quote by Titan Capital about Snapdeal emphasises why this change was beneficial and necessary.
Urban Company has built an enduring and growing business with a strong foundation. We have been fortunate to be part of this journey from its earliest days and immense credit is due to Abhiraj (Singh Bhal), Varun (Khaitan) and Raghav (Chandra) and their team for building it with great determination, resilience and foresight.
Although the firm did not disclose the exact amount, Titan Capital announced that all proceeds from their investment in Urban Company will be reinvested to support the next generation of founders and Indian startups.
The Snapdeal founders, who have been active angel investors, have backed over 300 startups through Titan Capital. They recently raised Rs 200 crore to continue investing in promising early-stage startups.
What’s in the future for them?
Bahl and Bansal promote Unicommerce, an e-commerce enterprise software developer that is preparing to go public after receiving approval from the market regulator.
Titan Capital has recently invested in several startups. These include Boba Bhai, a quick-service restaurant brand focusing on bubble tea; Karban Envirotech, a company specializing in smart appliances; and DevDham, a devotional platform.
According to Bhal, Urban Company generated revenues of Rs 282-283 crore during the April-June period of this year. It reported a profit before tax for the quarter. The company will become profitable by FY25.
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