As per news reports, the Urban Company has revised its IPO size by nearly 80% to adapt to volatile market conditions. It has now received shareholder’s nod to raise ₹528 crore in its upcoming IPO. The Draft Red Herring Prospectus (DRHP) for the same will be filed with SEBI by May 2025.
As per news reports, the current estimated valuation of Urban Company is between US$2.5 billion and US$2.8 billion. If it opts for a pre-placement offer with select few investors, its IPO size may decrease further. Kotak Mahindra Capital, Goldman Sachs, and Morgan Stanley are the lead bankers managing the upcoming issue.
Urban Company is a Gurugram-based home services startup. It runs a platform connecting users with trained professionals for home services like beauty treatments, cleaning, appliance repair, pest control, and home décor. It operates in India, the UAE, Singapore, Saudi Arabia, and Australia.
In FY24, the company reported a 30% rise in revenue to ₹827 crore, with India contributing around ₹738 crore. It also reduced its pre-tax loss to ₹93 crore from ₹312 crore in FY23, showing improved financial health.
While home services still form the bulk of revenue (77.9% or ₹496 crore in FY23), product sales have grown significantly. Products like Native RO water purifiers contributed ₹141 crore, or 22.1% of revenue. In Q1 FY25, Native RO recorded an annualised revenue of ₹96 crore.
The company is also seeing momentum in newer categories like wall panel decor and smart locks. Urban Company has completed over 1,00,000 wall panel installations and is pushing newer services like “Insta Maids” for fast cleaning.
Urban Company is preparing to go public with a clear focus on growth, product innovation, and technology upgrades. Its reduced IPO size shows caution, but strong fundamentals and diversification efforts indicate long-term potential for investors.
Check out: Upcoming IPO in 2025
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.
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Published on: Apr 16, 2025, 1:18 PM IST
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