New Delhi: India’s largest home services marketplace, Urban Company is all set to launch its Rs.1,900 crore initial public offering (IPO) on September 10 with a price band of Rs.98-103 per share. This consists of a fresh issue of Rs.472 crores along with an Offer For Sale (OFS) of Rs.1,428 crore with a lot size of 145 shares.
According to the documents filed with SEBI, existing investors Accel India, Elevation Capital, Bessemer India Partners, Vy Capital and Tiger Global are selling their holdings in the company.
Based on the current valuations, Accel India stands to gain about 29X its investment, while Elevation Capital and Bessemer Venture Partners stand to gain 19X and 14X, respectively. Later entrants, Vy Capital and Tiger Global will realise 5X and 2X gains as well.
For this issue, 75% of the offer is reserved for Qualified Institutional Buyers (QIBs), 15% for Non Institutional Investors (NIIs) and the remaining 10% for retail investors. Besides this, about Rs.2.5 crore of the offer is open for existing employees of the company.
One of the pioneers in the home services segment, Urban Company took a decade to eke out a profit of Rs.239.7 crore in FY25. Over the years, the company has been burning cash to expand its operations across India and in the UAE and Singapore as well.
Unlike the intense competition for orders in the food delivery and quick commerce niche, Urban Company is in a relatively comfortable position, with the company spending just Rs.207 crore on marketing in 2025, just 10% of the Rs.1,972 crore Zomato spent for customer acquisition and marketing during the year. Though newer entrants in the market could affect profitability, almost 82% of Urban Company’s platform users place repeat orders for a variety of home services- including housekeeping, plumbing, pest control and other household gig services.
With the proceeds of the IPO, the company aims to streamline its operations, invest in new technology and cloud infrastructure and other general corporate purposes.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investing in stocks includes financial risks, and past performance is not indicative of future results. Readers should conduct their own research or consult with a qualified financial advisor before making any investment decisions.
