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Urban Company, a popular Indian home services company, has filed its Draft Red Herring Prospectus (DRHP) on April 28, 2025, with plans to raise ₹1,900 crore through an Initial Public Offering (IPO). Initially, the company had aimed to raise ₹3,000 crore but has since reduced the amount.
According to the DRHP, the offering is split into two parts: a Fresh Issue worth ₹429 crore and an Offer for Sale (OFS) component of ₹1,471 crore. The company plans to list its shares on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
The IPO will be managed by top financial firms, including Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Private Limited, Goldman Sachs (India) Securities Private Limited, and JM Financial Limited. Additionally, Urban Company may opt for a pre-IPO placement of up to ₹85.8 crore before filing the Red Herring Prospectus (RHP) with the Registrar of Companies (RoC).
It’s important to note that the company will not receive any proceeds from the OFS part, as the money raised will go directly to the selling shareholders.
How the Company Plans to Use the Funds
Urban Company plans to use the funds raised from the Fresh Issue for several key purposes:
- Technology and Infrastructure: Developing new technology and expanding its cloud infrastructure.
- Operational Costs: Paying office lease expenses and supporting marketing activities.
- Corporate Expenses: Allocating funds for general corporate purposes.
Urban Company’s Financial Growth
For the year ending December 2024, Urban Company saw a significant increase in its revenue. It grew by 40.75%, reaching ₹846.02 crore compared to ₹600.90 crore in the previous year. After several years of losses, the company reported a profit after tax (PAT) of ₹27.14 crore for the period ending December 31, 2024.
What is Urban Company?
Urban Company is an online platform offering a wide range of home and beauty services. These services include cleaning, plumbing, pest control, carpentry, electrical work, appliance repair, painting, skincare, hair grooming, and massage therapy.
Expansion and Reach
The company currently operates in 59 cities globally, with 48 of these in India. It also serves customers in international markets, including the United Arab Emirates (UAE), Singapore, and Saudi Arabia (KSA).
Market Position
As of the end of 2024, Urban Company was the leading full-stack online platform for home and beauty services in India, based on net transaction value, according to a report by Redseer.
