Gurugram-based Urban Company, a leading online platform for home and beauty services, has officially filed its draft red herring prospectus (DRHP) with SEBI, signalling its intent to raise ₹1,900 crore through an initial public offering.
Out of the total issue, ₹429 crore will be raised through fresh share issuance, while the remaining ₹1,471 crore will come from an offer-for-sale (OFS) by existing investors. Early backers like Accel India and Elevation Capital holding 10.5% and 10.8% stakes respectively will divest a combined ₹779 crore worth of shares.
Urban Company has earmarked over 50% of the proceeds from the fresh issue for enhancing its technology capabilities. A portion will also go toward securing office spaces and strengthening its brand through increased marketing efforts.
Operating in 59 cities across India, the UAE, and Saudi Arabia, the company is rapidly expanding and sees this IPO as a strategic step to scale further.
The startup posted a remarkable turnaround in its financials. In the nine months ending December 2024, it reported a pre-tax profit of ₹27.14 crore, compared to a loss of ₹57.77 crore in the same period a year prior.
A significant tax credit also helped it log a net profit of ₹243 crore for the period, as per news reports.
This profitability milestone is expected to strengthen investor confidence as Urban Company prepares to enter the public markets.
Urban Company’s IPO is backed by marquee global investors like Tiger Global and Bessemer Venture Partners. Leading investment banks Kotak Mahindra Capital, Morgan Stanley, Goldman Sachs, and JM Financial are managing the issue.
The company joins a growing list of Indian startups preparing to go public, following in the footsteps of firms like PhonePe, Flipkart, and Physics Wallah.
Read More: Upcoming IPOs This Week: Ather Energy IPO Opens on April 28.
Urban Company’s IPO reflects growing investor confidence in India’s consumer-tech and home services segment. With solid financial performance, global expansion, and strategic use of IPO funds, the company is well-positioned for its next growth phase as a publicly listed entity.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Apr 29, 2025, 10:09 AM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
Know MoreWe're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
