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Published on
April 11, 2025
5 min read
Urban Company Gets Shareholder Nod for Rs 528 Crore IPO
Urban Company has received shareholder approval to raise ₹528 crore from its initial public offer (IPO). According to NDTV Profit, the company has said, “In the event of a pre-IPO placement, the size of the offer would be reduced to the extent of equity shares issued under the pre-IPO placement.” In 2021, the company received a funding of $255 million at the valuation of $2.1 billion.
Urban Company revised its IPO size from ₹3,000 crore to ₹528 crore because of current market conditions. The company adjusted its IPO size to conform with investor sentiments for a successful share market entry. The company intends to submit its draft prospectus to the Securities and Exchange Board of India (SEBI) through its red herring prospectus in the near future.
While the exact price of Urban Company’s IPO is yet to be determined, the company’s last valuation stood at approximately $2.5 billion. Urban Company said in its RoC filing, “The company intends to list its equity shares on one or more stock exchanges to enable the shareholders to have a formal marketplace for dealing with such equity shares. The company proposes to create, offer, issue and allot fresh equity shares of the company bearing face value ₹1 each each up to an aggregate of ₹528 crore ($60.60 million).”
Financial Performance and Growth
Urban Company has reported a 30% YOY revenue growth during the fiscal year ending March 2024 to ₹827 crore. Operationally Urban Company reduced its net loss to ₹93 crore compared to ₹312 crore the prior year showing improved business effectiveness.
The company operates across 60 Indian cities along with operating in the UAE and Singapore market. The company manages 2.2 million monthly service requests among its 55,000 professionals who conduct orders averaging ₹1,290 per transaction.
Urban Company IPO Backed by Accel & Elevation Capital
Accel-backed Urban Company has gained significant investor interest. The investment portfolio includes stakeholders from Vy Capital and Elevation Capital along with Accel. Startups’ co-founders—Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chandra—owned 24.66% of the company, with each of them having an 8.22% stake. Elevation Capital owned 14.56%, Accel India owned 14.40%, and Vy Capital owned a 12.2% stake.
A successful IPO will enable the home services company to fuel its service expansion and develop its technological infrastructure. The company made a major strategic move when it introduced a service that enables customers to book maids for 15-minute appointments as part of its ongoing dedication to enhance customer options.
As Urban Company prepares for its IPO, it continues to focus on delivering quality services and expanding its market presence. The scheduled public offering will favorably reflect on the company’s financial structure, ultimately enabling the achievement of its strategic growth targets.
Urban Company’s upcoming IPO stands as a turning point for the company because it will allow the firm to enhace its market standing and create shareholder value. Urban Company demonstrates outstanding potential for the home services industry’s success through its strong financial position integrated with its extensive service network and financial investor support.
