Key Points :
Urban Company raises ₹1,900 crore IPO on Sept 10–12, price band at ₹98–103.
Minimum of ₹14,935 to be invested by retail investors; employees are eligible for ₹9 per share discount.
Financing through way of technology, rent, advertisement, and corporate development.
Key Background :
Ever since it was launched in 2014 by UrbanClap, the firm later rebranded in 2020 as Urban Company to be able to keep pace with its growing portfolio and global reach. The website provides professional experts to clients who are getting anything from wellness and beauty treatments to cleaning, fixing, and other upkeep work. It was originally established in India, UAE, Singapore, and Saudi Arabia and now has an active network of over 54,000 service experts.
Years witnessed Urban Company become a name at every household in city India, driven by growing demand for organized home services. With its technology-driven platform, it offers guarantee of quality and trust, which brings relief to the buyer and training, branding, and guaranteed income opportunities to partners.
On the topline, the company has demonstrated strong growth. In the third quarter of FY25, it recorded revenues of ₹367.26 crore on profit after tax of ₹6.93 crore. In FY25, revenues rose 38% year-on-year to ₹1,144.46 crore, and the firm returned to a profit of ₹239.76 crore from a loss of ₹92.77 crore in FY24. This return to profitability is reflective of its improved unit economics as well as scaling efficiency.
IPO proceeds will fund Urban Company’s future growth phase. With the massive investment in cloud infrastructure and technology, it will improve partner performance as well as customer satisfaction. Advertising expenditure will fuel brand coverage and recall, primarily in Tier II and Tier III cities, and long-term capital for lease commitments and general purposes will improve operating resiliency.
Institutional investor demand should be strong, with 75% of issue to QIBs, demonstrating faith in the business model and growth prospects of the company for the future. The ₹9 employee discount also demonstrates Urban Company’s desire to align long-term incentives for employees and service partners.
At the upper end of the valuation range, Urban Company will be worth nearly ₹15,000 crore ($1.7 billion), making it among India’s richest consumer internet service start-ups. Its successful listing would set an example for other tech-driven service businesses to list in public markets.
About the Author
Abhishek Roy
Abhishek Roy is a Managing Editor at Business Minds Media India.