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Table of Contents
Abhiraj Bhal: Complete Interview Transcript
Q: What inspired you to take the entrepreneurial plunge?
A: I wanted to do more with my life. Throughout IIT and IIM Ahmedabad, I was constantly thinking about starting something of my own. My co-founder Varun and I spent time exploring ideas and entrepreneurship was a calling we couldn’t ignore. Working at BCG, we talked every weekend about starting a venture. Eventually, I quit my job without a concrete idea, believing we would figure it out because youth is always kind that way.
Q: What was your first startup idea and what were the learnings?
A: Our first startup was Cinema Box, aimed at providing entertainment on buses, trains, and planes. We did no research initially, which was a mistake. We discovered a Wi-Fi ban on Indian airlines, lack of interest from operators, and realized the market was much smaller and more complex than assumed. The biggest learning was that we cared about the product but customers and partners didn’t share our passion. We exited that idea quickly and moved on.
Q: How did Urban Company begin and what drove the choice of industry?
A: When Raghav, our third co-founder, joined, he emphasized the need for technology at the heart of the business. We sought a large market with tech-disruptable opportunities and were drawn to services, motivated by personal pain points. I started a Facebook group to gather trusted service professionals, which organically grew fast and revealed a huge consumer and supply-side pain. That’s when we fully committed to building the platform.
Q: How did you approach the trust deficit in Indian consumer behavior?
A: Trust is tough in India; letting strangers into homes requires assurance. Early on, we lacked product-market fit despite rapid scaling, with lots of verticals and little focus. We then concentrated on one vertical: beauty services for women at home. We built infrastructure - training, financing, insurance - for professionals, and found product-market fit in that category. This focus allowed us to expand with confidence.
Q: What are defining principles for running Urban Company?
A: Customer obsession is a core value. Product-market fit is rare and requires constant focus on quality, convenience, and value, especially in India’s price-sensitive market. For example, professional cleaning is our largest category, but growth hit a ceiling. We noticed daily cleaning needs were unmet due to price sensitivity and operational inefficiencies. We reshaped supply chains, going hyper-local to cut costs and provide affordable, recurring services, achieving a major product-market fit breakthrough.[1]
Q: What early challenges did you face scaling the company?
A: We had 300 people and a $100M valuation without real product-market fit - just vanity metrics. This felt unsustainable, so we narrowed focus to the beauty vertical, building full-stack operations and infrastructure. This pivot gave us real understanding and traction, teaching us we couldn’t spread too thin with many verticals.
Q: How do you build a customer-obsessed culture?
A: Customer obsession is embedded in our values. We maintain a lean structure with small teams owning specific charters. Every leader is required to meet at least 50 customers to truly understand their needs. We emphasize ownership and encourage employees to think and act like owners to create real impact.
Q: What lessons did you learn from international expansion?
A: While our expansions to UAE, Saudi Arabia, Singapore, and briefly Australia are profitable, none have the scale of India. My advice is to focus on India’s enormous opportunity and consolidate locally, rather than stretch resources globally prematurely.
Q: How do you approach fundraising?
A: I kept 18-24 months of runway before raising the next round, which gave me the peace of mind to build confidently and aggressively. Though it may dilute stakes over rounds, it’s worth raising capital from a position of strength and having time to innovate without pressure. Today, India business is profitable with infinite runway, validating the approach.
Q: Who do you turn to for mentorship?
A: I have three independent board members who provide clear and honest advice, plus my co-founder Varun, with whom I’ve worked for nearly 20 years. They form my support and guidance system.
Q: How do you manage work-life balance?
A: My wife balances me out and helps me remain grounded. Early in the journey, I neglected sleep and health, but now I prioritize fitness and family, scaling back on social or secondary commitments to focus on what matters most.
Q: What does success look like for you?
A: Success would be Urban Company garnering fanatic consumer love and empowering one million service professionals with stable, dignified livelihoods and upskilling opportunities. We want to create value for customers and truly uplift service providers.
Q: How is consumer behavior evolving in India?
A: The emerging middle class earning ₹10-30 lakh annually is driving growth. These customers seek durable quality and great value. Marketing helps, but genuine value and product efficacy “pull” customers naturally.
Q: How do you anchor your product strategy on value and differentiation?
A: We design products that deliver total value, not just upfront cost savings. For example, our water purifier isn’t cheapest but has no servicing cost for two years, reducing total cost of ownership. This appeals to pragmatic customers who want value beyond price.
Rapid Fire Questions and Answers
Q: Investors or founders?
Being an investor is easier and more fun, but my heart is with founders.
Q: Best age to start up?
Start in your 20s - the sooner, the better.
Q: Harder to manage: customers or employees?
Customers.
Q: Weirdest service request?
An angel investor suggested deploying personal stylists who accompany and shop with customers, and an ex-board member suggested launching a “jugaad technician” who can fix anything in your house.
Q: Recent favorite book or movie?
Book: Man’s Search for Meaning by Viktor Frankl. Movie: Past Lives.
Q: Role model?
Uday Kotak, for building massive, ethical, and well-run teams and organizations.
