Urban Company has taken a crucial step toward its highly anticipated initial public offering (IPO) by transitioning from a private limited entity to a public company. Regulatory filings confirm that the board has approved renaming the company from “Urbancalp Technologies India Private Limited” to “Urbanclap Technologies India Limited.” This structural change sets the stage for its public listing.
Urban Company IPO Plans and Lead Managers
Urban Company is targeting INR 3,000 crore (~USD 350 million) through a combination of fresh and offer-for-sale (OFS). Kotak Mahindra Capital, Goldman Sachs, and Morgan Stanley will serve as lead managers. The company is expected to file its issue papers by the end of March 2025.
Urban Company initially planned its IPO in 2021 but postponed it later. To prepare for a future IPO, the company made some significant changes in the corporate management and appointed independent directors Ashish Gupta, Ireena Vittal, Deepinder Goyal, and Shyamal Mukherjee.
Investor Moves and Secondary Transactions
An existing investor, Prosus, intends to make a secondary deal to invest an additional USD 30 million (INR 250 crore) in the firm prior to the IPO. Bessemer Venture Partners will be able to partially leave through this deal. Employees and early investors have already sold shares to Dharana Capital for INR 400 crore.
Financial Performance and Growth Metrics
Urban Company has demonstrated steady financial progress. In FY24, revenue from operations rose 30% year-on-year to INR 827 crore, up from INR 637 crore in FY23. The company also reported a 70% reduction in losses, narrowing them to INR 93 crore from INR 312 crore in the previous year.
The momentum has continued into FY25. In the first quarter, Urban Company recorded INR 281 crore in revenue, marking a 37.3% year-on-year increase. Notably, it posted a profit before tax of INR 12 crore in the same period, signalling financial stability ahead of its IPO.
Company Overview and Expansion
Abhiraj Singh Bhal, Varun Khaitan, and Raghav Chandra founded Urban Company in 2014, and it has since grown to become the top tech-driven home services marketplace in India. Plumbing, appliance repairs, house cleaning, and spa and beauty services are all included in its offer. With the introduction of its own water purifiers, the firm has made its foray into the market for branded household products.
In addition to operating in more than 60 Indian cities, Urban Company is present abroad in Saudi Arabia, Singapore, and the United Arab Emirates. It keeps growing and enhancing service quality with a network of over 55,000 verified service experts.
Investor Backing and Valuation History
Tiger Global, Accel, Elevation Capital, and Dharana Capital have invested over INR 3,457.16 crore (~USD 450 million) in the Urban Clap. The company’s valuations have fluctuated many times: USD 2.1 billion in June 2021, USD 2.8 billion during an ESOP liquidity program in December 2021, and between USD 2.2 billion and USD 2.5 billion during a 2023 buyback.
Conclusion
Urban Company’s transition to a public company and its IPO filing on the horizon had positioned the company for a stellar market debut. The company’s financials are improving, increasing market presence, and recent notable investor activity suggests strong potential for sustained growth in India’s evolving home services sector.
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