Urban Company, a prominent home services platform, has ventured into the world of branded home appliances with the recent launch of a line of water purifiers under the Native brand. This new move puts them in direct competition with established players like Hindustan Unilever’s Pureit and Kent RO Systems.
Abhiraj Singh Bhal, Co-Founder and CEO of Urban Company, expressed the company’s motivation behind this expansion, stating that their experience in repairing and servicing over a million water purifiers revealed a common concern among customers – the frequent need for filter changes and servicing. To address this, they have launched a water purifier that can run for two years without requiring servicing, with an option for an extended warranty for an additional two years.
Urban Company is known for its technology-driven marketplace offering services like beauty and spa treatments, cleaning, plumbing, and appliance repair through its app. Operating in over 50 Indian cities, as well as the UAE, Singapore, and Saudi Arabia, they are also actively exploring a joint venture for the Saudi market.
In the fiscal year 2023, Urban Company reported a 45% increase in operating revenue compared to the previous year, reaching ₹637 crore, while their losses decreased from ₹514 crore to ₹308 crore. Their Indian business achieved break-even status in the first quarter of fiscal year 2024. Urban Company’s target market for these products is second-time buyers, who account for over 50% of the ₹5,000-crore water purifier market revenue. These consumers typically seek better options after their initial ownership cycle, which spans 4-5 years.
The success of Urban Company’s venture into the water purifier market will largely depend on consumer trust, as the transition from a service provider to a product seller can be challenging. Quality and reliability will be crucial factors in building trust, as even a minor misstep could jeopardise their well-established service reputation.
Urban Company has invested nearly four years in research and development and partnered with a third-party manufacturer to produce their RO machines. Kent and Eureka Forbes currently dominate the water purifier market in India, controlling 50% of the sector. The company has tied up with a third-party manufacturer to produce the water purifiers in facilities located in Pune and Gujarat. The water purifiers will initially be available in 200 cities through Urban Company’s app and Amazon, with plans to expand into modern trade channels.
Looking ahead, the company plans to expand its product range with the launch of smart door locks. The company’s goal is to ensure internal preparedness, profitability, and strong governance before pursuing a public listing.
